The New York hedge fund Starboard Value is seeking to raise $300 million through a special-purpose-acquisition, or blank-check, company, which will look for a business or businesses to operate.
Newly incorporated Starboard Value Acquisition Corp. will sell 30 million units at $10 apiece, according to a Securities and Exchange Commission filing.
The value may increase to $345 million if underwriters exercise an over-allotment option.
SVAC will look for a "merger, capital-stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses," the company said in a statement.
Starboard said in its filing that it "will seek to acquire established businesses that we believe are fundamentally sound but potentially in need of financial, operational, strategic, or managerial transformation to maximize value for stockholders."
"While we may pursue an acquisition opportunity in any business, industry, sector or geographical location, we intend to focus on industries that align with the background of our sponsor and industry advisers," the company said in its filing.
"These industries include the technology, healthcare, consumer, industrials and hospitality and entertainment sectors, which we refer to as our targeted sectors."
The stock is expected to list on the Nasdaq under the ticker symbol SVACU. UBS, Stifel and Cowen are the joint book-running managers.
Starboard Value Acquisition's sponsor is SVAC Sponsor LLC, an affiliate of activist investor Starboard Value LP.
M.J. McNulty, a Starboard executive, will lead the new vehicle as CEO. Jeffrey Smith, chief executive of Starboard LP, will be SVAC’s chairman.
Special-purpose-acquisition companies, or SPACs, have raised $22.5 billion this year to spend on deals. That's more than 1 1/2 times the record $13.6 billion raised in 2019, Reuters reported.