Stellar Acquisition III, Inc. has announced that it has entered into a definitive Agreement and Plan of Merger to combine with Phunware, Inc. The transaction values Phunware at an enterprise value of USD 301 million, on a cash-free, debt-free basis, with the transaction consideration to be paid in newly issued equity securities of Stellar.
The transaction with Phunware enables Stellar to enter two of the most innovative and rapidly growing sectors within the technology space: mobile cloud software and blockchain. Phunware’s mobile application lifecycle management platform delivers mobile marketing automation, analytics and business intelligence, alerts, notifications and messaging, content management, location-based services, audience engagement, audience monetization, vertical solutions, big data and cryptonetworking, the company said.
The platform processes over 4 billion events per day, totaling over 1.4 trillion events per year. This amounts to petabytes of actionable data across thousands of mobile application portfolios. Currently, Phunware receives revenue from a large and diversified customer base that includes numerous Fortune 5000 companies in both Software-as-a-Service (SaaS) via recurring revenue streams and transactional formats.
Phunware intends to initiate within the 1st half of 2018 a Token Generation Event (“TGE”) based on its “PhunCoin™” cryptonetworking ecosystem.
The combined company will be led by Mr. Alan S. Knitowski, who will continue as Phunware’s Chief Executive Officer, and Mr. Matthew Aune, who will continue as Phunware’s Chief Financial Officer. As part of the transaction, the combined company will redomesticate from the Marshall Islands (Stellar’s jurisdiction of formation) to Delaware.
Alan S. Knitowski, CEO of Phunware, said, “Our stated goal has always been to reach every connected device on Earth through mobile applications, and this transaction turbocharges our ability to achieve that vision. With a current reach to over one in ten devices worldwide, our platform is a formidable foundation to build upon. Merging with Stellar will enable us to scale that foundation through organic and inorganic growth, including the PhunCoin Token Generation Event. We are extremely proud of this important milestone and are excited for the future.”
Matt Aune, CFO of Phunware, added, “Since Phunware’s founding in 2009, we have seen dramatic growth both financially and as a platform. We are now at an exciting stage of our development where we are prepared to take our products and scale to the next level, and this transaction provides the resources that we will use to implement our ambitious plans worldwide.”
Akis Tsirigakis, Co-CEO of Stellar, stated “We are very pleased to announce this transaction and our entry into the mobile cloud software and blockchain sectors, both extremely attractive and rapidly growing market segments, with great potential for many years to come. Phunware is in the process of implementing its ambitious plan to become the global leader in Multiscreen as a Service (MaaS) and becoming a public company, which will allow Phunware to further enhance its quality and governance foundations.”
George Syllantavos, Co-CEO of Stellar, added “Through this transaction, we offer our shareholders the opportunity to participate in the growth prospects of this innovative company within the exciting MaaS/SaaS/blockchain sectors. Phunware is a company on the forefront of technological advancements, having the vision and unique ability to integrate mobile cloud software and blockchain technology for the benefit of the global consumer. We are excited about the future and are committed to contribute to the company’s success.”
Sea News, March 1