Internet service provider Starry seeks to go public in deal valued at $ 1.66 billion
Starry, a wireless internet provider founded by tech entrepreneur Chet Kanojia, said he plans to go public through the use of a Special Purpose Acquisition Company (SPAC) that would give him a enterprise value of $ 1.66 billion.
The firm, with offices in Boston and New York City, said the firm – called FirstMark Horizon Acquisition Corp., backed by New York-based venture capitalist FirstMark Capital – will merge with Starry to enable its market debut. public.
Starry, which uses the technology to wirelessly transmit Gigabit-speed Internet from towers and rooftops to customer homes at a lower price than traditional broadband, will continue to be led by Kanojia as CEO, according to the report. company.
Under the PSPC deal, Starry will receive $ 452 million in cash, including $ 130 million from investors ArrowMark Partners, Atreides Management, Fidelity Management & Research Company, Tiger Global Management and affiliates of FirstMark Capital, “for finance its growth and the deployment of its services across the United States and to pay off Starry’s existing debt, ”according to the company.
Starry currently provides Internet services in Boston, New York, Los Angeles, Washington, DC, Denver and Columbus, Ohio, covering more than 4.7 million homes. The company, which said it expects to record $ 22 million in revenue in 2021, said it hopes to expand its network with 1.4 million subscribers and $ 1.1 billion in revenue by 2026.
Kanojia faced significant legal hurdles when in 2012 he formed Aereo, a startup that allowed subscribers to watch live TV on internet-connected devices. Aereo, which raised nearly $ 100 million in venture capital funds, was forced to shut down its service in 2014 after the U.S. Supreme Court ruled the startup was illegally distributing content from broadcasters.
Upon completion of the merger, the new company will continue to operate under the Starry name and will be listed “on a national stock exchange” under the ticker symbol “STRY”.