Advantage Solutions to go public in SPAC deal at $5.2 billion valuation

(Reuters) – Conyers Park II Acquisition Corp (CPAA.O) said on Tuesday it would merge with Advantage Solutions Inc, taking the sales and marketing services provider public at a valuation of $5.2 billion.

The deal will be partly financed through a $700 million common stock private placement, which includes $200 million from Advantage Solutions’ existing partners such as CVC Fund VI and Bain Capital Private Equity.

Conyers, which went public in July last year, will provide up to $450 million of cash raised during its initial public offering and a private placement.

A number of private companies, including healthcare services provider MultiPlan and electric-car maker Fisker, went public this year by merging with blank-check companies.

High-profile investors such as Bill Ackman and Michael Klein have raised billions through their SPACs this year to strike deals with large unicorn startups and private firms.

Ackman-backed Pershing Square Tontine Holdings Ltd PSTH_u.N raised $4 billion in July, making it the largest ever blank-check IPO.

Conyers, whose shares were up 52.2% in premarket trading, said the Advantage Solutions merger is expected to close by late October.

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