DiCaprio-backed Rubicon to go public with Founder in $2B SPAC deal

December 16, 2021 07:19 AM PST

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DiCaprio-backed Rubicon to go public with Founder in $2B SPAC deal — Image source: Kristsina Yakubovich, Shutterstock

Highlights

Rubicon Technologies is going public through a merger with special purpose acquisition company Founder (FOUN).

The combined value of the company is approximately US$2 billion.

Rubicon is a waste management technology company, founded in 2008, and is backed by actor Leonardo DiCaprio.

Actor Leonardo DiCaprio-backed Rubicon Technologies LLC announced today it is entering into a definitive merger agreement with special-purpose acquisition company Founder (NASDAQ: FOUN) at an approximate valuation of US$2 billion (combined company).

Agreement details:

The gross transaction proceeds will amount to US$432 million before deducting the transaction expenses. This includes US$321 million of cash in the trust account of SPAC and US$111 million in private investment in public equity PIPE. The PIPE investors are Palantir technologies, Rodina Capital, and New Zealand Super Fund.

The company will list on the NYSE with the ticker symbol ‘RBT’ after completing the merger agreement. Rubicon plans to use the funds for expansion in the international market and scaling up its platform as well as acquiring new customers.

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Lexington, Kentucky-based Rubicon uses cloud-based technology to offer waste management and recycling solutions. The technology company has more than 8,000 recycling and hauling partners in around 20 countries.

The software company manages waste and recycling by providing its platform and has Apple Inc., and Starbucks Corp. as its clients for reducing wastes and carbon emissions.

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The company was founded in 2008, and since its inception, it has made significant growth financially and created a brand name in the industry. Its roster of customers includes names such as Walmart, FedEx and city governments in Kansas City and Baltimore, to name a few.

The company has more than 50 US and international patents to its credit. Its customers range from Fortune 500 companies to smaller enterprises too. It is currently managing over 8 million Unique Service Locations (USLs) worldwide.

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Rubicon won the CFI’s Best SaaS Smart City Solutions award of 2021 and received the 2019 IoT Evolution Smart City Innovation Award.

Bottom line:

This year has seen nearly 600 SPACs raising approximately US$160 billion. The Rubicon SPAC deal is another addition to the stock exchange listings this year.

Carbon emissions are of high concern across the world, and at this time, a company that works to reduce waste, as well as its carbon footprint, may not face a lot of headwinds in the coming time. However, with the flurry of listings, investors must properly analyze the companies before putting in their money.