A Houston-based special purpose acquisition company led by some prominent names in media and sports has reached a deal to take a tech company public.
Beaumont, Texas-based Infrared Cameras Holdings Inc., which provides thermal imaging platforms, signed a merger agreement with SportsMap Tech Acquisition Corp. (Nasdaq: SMAP) on Dec. 5, and the deal is expected to close in the first half of 2023.
The combined company will retain the Infrared Cameras Holdings Inc. name and continue to trade on the Nasdaq under a new ticker symbol, which is not yet specified.
Houston businessman David Gow, who serves as SportsMap’s CEO, will become chairman of the board of the combined company, while current Infrared Cameras CEO Gary Strahan and the company's other senior management are expected to retain their positions.
“The company has a strong value proposition, detecting the overheating of equipment in industrial settings,” Gow said. “ICI also has assembled a strong management team to execute on the opportunity.”
ICI, which was founded in 1995, produces thermal imaging platforms intended for industrial-sector uses such as methane-leak detention and conveyer belt monitoring in warehouses. The software is intended to reduce unplanned downtime by predicting maintenance needs for industrial equipment.
SportsMap incorporated in May 2021 and went public in October 2021 with a $115 million initial public offering. SportsMap’s board includes former Houston Astros President Reid Ryan, now CEO of Ryan Sanders Baseball, and the Houston Dynamo’s first general manager, Oliver Luck, who has held several other sports leadership roles over the years. Gow's own sports and media background includes serving as chairman of Gow Media, which owns ESPN Radio Houston, SportsMap Radio Network, CultureMap and several other digital content sites.
Gow told the Houston Business Journal in 2021 that the SPAC was looking in four categories for merger targets: new methods of fan engagement; health and wellness through wearables and other data analytics; esports, the realm of professional, competitive video games; and fantasy sports and gambling technology.
SportsMap had until April 2023 to complete a business combination agreement.
Latham & Watkins LLP is acting as legal adviser to Infrared Cameras, and ArentFox Schiff LLP is acting as legal advisor to SportsMap. Craig-Hallum Capital Group LLC and Roth Capital Partners LLC are serving as financial advisers to SportsMap.
A flurry of SPAC activity picked up across the country and in Houston in 2020. Although the number of SPAC deals nationwide dropped significantly in the past 12 months or so amid cooling investor interest, Houston has seen an uptick recently.
In August, Houston-based Cenaq Energy Corp. (Nasdaq: CENQ) agreed to combine with Bluescape Clean Fuels Intermediate Holdings, which has locations in Houston and New Jersey. The combined company will be called Verde Clean Fuels Inc. and is expected to trade on the Nasdaq under the ticker symbol "VGAS" after the deal closes, which is slated for the first quarter of 2023.
Houston-based Nauticus Robotics Inc. (Nasdaq: KITT) went public through a merger with New York-based CleanTech Acquisition Corp. in September. Also, Houston-based Good Works II Acquisition Corp. (Nasdaq: GWII) signed a definitive agreement in October to combine with Austin-based Direct Biologics LLC, and space technology firm Intuitive Machines LLC announced in September it will combine with Inflection Point Acquisition Corp. (Nasdaq: IPAX).
In November, Houston-based financial technology company Qenta Inc. announced it will combine with Blockchain Coinvesters Acquisition Corp. I (Nasdaq: BCSA), Sable Offshore Corp. announced plans to combine with Houston-based special purpose acquisition company Flame Acquisition Corp. (NYSE: FLME), and Next Renewable Fuels signed an agreement to combine with Industrial Tech Acquisitions II Inc. (Nasdaq: ITAQ).
