Seattle-based event technology company Banzai is going public through a merger with 7GC & Co. Holdings Inc. (Nasdaq: VII), a special purpose acquisition company (SPAC).
The companies expect the deal to close in the first half of next year, after which the combined company will adopt the Banzai name and trade on the Nasdaq. Banzai is expected to have a post-transaction value of $380 million, according to a release.
"With the capital from our business combination with VII, we expect to continue hyper-scaling to become the leading video engagement platform for marketers,” Joe Davy, co-founder and CEO of Banzai, said in a release.
Banzai expects to raise cash proceeds of about $230 million from VII. According to the release, Banzai will use the money to grow its customer base and geographic reach, among other priorities.
Banzai also plans to acquire the advertising data company Hyros for about $110 million, primarily in stock, right before the SPAC merger closes. Hyros allows clients to track their advertising data so they can get more from their advertising spending. Its clients include Pier 1 and Bodybuilding.com.
Banzai, founded in 2015, makes software to help with event outreach and engagement. The company aims to help clients with videos, webinars and virtual events.
Banzai in February 2021 acquired the Tampa, Florida-based webinar platform Demio in a cash-and-stock deal for an undisclosed amount. In 2020, Banzai acquired the Texas-based event management software company High Attendance. Banzai's clients include Square and Hewlett Packard Enterprise.
7GC, an investment firm, partnered with the SPAC sponsor Hennessy Capital to form VII. 7GC has invested in Hims & Hers and Cheddar.
"There has been incredible value creation for marketing tech businesses which have become essential platforms in email or social channels," Jack Leeney, CEO of VII, said in a release. "7GC is thrilled to partner with Banzai as the business continues to scale and own the marketing customer for video.”
