Schmid Group Sets Sights on NYSE Listing
In a major announcement, the Schmid Group, a prominent German technology firm, unveiled its intentions on Wednesday to list New York through a special purpose acquisition company (SPAC). This move is anticipated to hand the technology firm a substantial valuation of $640 million.
German Family Business Goes Public
A fifth-generation family business that has carved a niche in the electronics industry, the Schmid Group will make its mark as a publicly listed company on the New York Stock Exchange (NYSE). This milestone is set to occur in the fourth quarter of this year.
Ralf Speth-led SPAC to Facilitate the Transaction
The transformative transaction will occur via Pegasus Digital Mobility Acquisition Corp, a blank-check company led by seasoned automotive industry leader Ralf Speth. "We have been considering this step for some time and see the NYSE and the U.S. capital markets as much more suitable for a technology company," remarked Christian Schmid, CEO of Schmid Group.
Schmid Group: A Journey from Iron Foundry to Tech Innovator
Established in 1864 as an iron foundry and headquartered in Freudenstadt, located in Germany's Black Forest, Schmid has come a long way. With over 800 employees, the firm develops advanced equipment and manufacturing processes for printed circuit boards and cutting-edge technology for industries such as renewable power and energy storage.
Family Ownership Continues Amid Merger
Upon completing the potential merger, the Schmid family is set to retain majority ownership and management positions. This indicates a healthy continuity and faith in the firm's future.
SPAC Transactions: A Shift Towards Profitable Targets
This deal signifies a change in trend for SPAC transactions, which experienced a surge in popularity during 2020 and 2021, primarily supporting smaller, unprofitable startups. Pegasus Digital is financially backed by StratCap, which focuses on digital infrastructure investments. It will continue to be helmed by Speth, whose career includes notable stints at BMW and as the former CEO of Jaguar Land Rover.