Shares of Starboard Value Acquisition Corp. soared 16.8% in premarket trading Monday, after the special purpose acquisition company announced a merger agreement that would take data center company Cyxtera Technologies Inc. public, which implies an enterprise value of $3.4 billion. When the deal closes, which is expected to occur in mid-2021, the combined company will operate at Cyxtera, and the stock is expected to list on the Nasdaq under the ticker symbol “CYXT.” The company will receive $654 million in proceeds. Starboard Value Acquisition went public in November 2020. The deal comes at a time of relatively strong investor demand for initial public offerings, was the Renaissance IPO ETF has run up 26.8% over the past three months through Friday, while the S&P 500 has gained 9.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.