Holisto, a company that has developed artificial intelligence-based technology to locate the right and cheapest hotel reservation, intends to merge with SPAC at a value of about $ 405 million. Yes, the Spacks are still alive, there are hundreds of Spacks with cash looking for activity, so the field is not dead, but it is definitely dying. Against the backdrop of the huge failure of spook mergers in the last two years and a drop of about 50% on average in spikes, investors are not approaching the shares of companies that have merged into spikes. They understand that the way to bypass an IPO is less controlled and supervised and with many more risks. A company going through an IPO process cannot give forecasts, a company that merges with Spock provides forecasts in the sky for 2025. It excites the masses of investors and those who have bought from everything next in hand, as mentioned, record a loss of at least half of their money.
And yet, there are still mergers though at a lower rate, at lower values, more realistic and it still does not guarantee that there will be no losses after the merger. The merger is in the interest of Spack’s controlling shareholders and its developers as a merger gives them a large package of low-priced options. The merger is of course also in the interest of the merging technology company, and so it turns out that there are mergers that, even though they are not right for the shareholders, are underway. Shareholders who vote against, by the way, are not necessarily hurt. Spack has a mechanism whereby the shares can be sold for $ 10 (base price) if you are not interested in a merger. Complicated, but bottom line, there is a situation where some of the shareholders come out of the deal of the Spock, those who want to vote in favor and the deal is approved, on the way giving gifts to associates-entrepreneurs-stakeholders. The question is what will happen next? Meanwhile, the history of the Spacks shows that investors are selling and selling after the merger is complete and the stock is collapsing.
One way or another, Ilan Levin’s Speak Moringa reports that it will merge the Israeli TravelTech company Holisto into it, with the amount of raising capital in parallel with the merger amounting to $ 115 million. In addition, Holisto will receive $ 30 million convertible bonds.
Holisto launched its updated system about two years ago. It was founded 7 years ago by Eran Shust, who serves as the company’s CEO, and Avi Wurzl, who serves as the VP of technology and operations, and has raised a total of $ 9.3 million since its inception. It employs 370 people and revenues in the first quarter of the year totaled $ 7.2 million, compared to $ 2 million in the corresponding quarter and compared to revenues of $ 14.9 million in 2021 as a whole.
Among the investors in Holisto – Aviv Refuah and the Fattal Group, the investment cell and the investment arm of El Al.
“The combination with Moringa will allow us to leverage our technology. We have the opportunity to disrupt the large, fragmented and complex market of tourist bookings, with advanced data and artificial intelligence technologies,” said Schost. “And access to the capital market will allow us to continue to leverage the company and the technology.”
Holisto’s expected merger joins a series of expected mergers of Israeli companies with Spacks – Pagaya, Selena, Stickspay, parent Security and Freitos. The question is which of these mergers will be implemented and at what price? The father, for example, talks about $ 1.3 billion, which is a value detached from its value on the Tel Aviv Stock Exchange. Does it make sense for investors on Wall Street to pay 8 times more than investors in Tel Aviv?
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