Orrick's Ed Dyson recently spoke with PitchBook regarding the growing trend of U.S. listed special purpose acquisition companies, or SPACs, seeking to merge with foreign startups. The landscape is increasingly more favorable abroad, with less competition for the highest-quality companies than in the U.S. In addition, merging with a U.S. listed SPAC is an appealing option for non-U.S. growth companies, allowing them to access much-needed capital.
According to Ed, "[U.S. listed SPACs will] pay for these businesses, and the valuations that they're getting are just better." While competition among U.S. SPACs seeking targets abroad is increasing in Europe, Ed noted, "The Europeans are trying to catch up."