Redmond-based surveillance tech company Airship AI is inching closer to going public.
On Thursday, Airship AI and special purpose acquisition company (SPAC) BYTE Acquisition Corp. announced a meeting for BYTE shareholders on Dec. 15 to approve BYTE's acquisition of Airship AI. If shareholders approve the deal, the companies expect the deal to close soon after, and the combined company would trade on the Nasdaq under the ticker symbol AISP.
“We believe being a public company will bolster our credibility as a financially strong partner to our customers by demonstrating to them our financial flexibility and transparency,” Airship AI President Paul Allen said in a June news release when the companies first announced the potential deal.
BYTE (Nasdaq: BYTS) is acquiring Airship AI for a pre-money value of $225 million, according to the June release, after which Airship AI's management team will stay in place. Both boards have approved the deal. If no BYTE shareholders redeem their shares, Airship AI shareholders would own 70% of the combined company.
Airship AI, founded in 2006, uses artificial intelligence to help clients make decisions based on surveillance data. The company works with law enforcement, military and commercial clients. Airship AI offers both software and hardware products, but the company says on its website it tries to let clients use as much of their existing IT and sensor technology as possible.
Airship AI's clients include household names such as Home Depot and FedEx. In a Tuesday filing with the Securities and Exchange Commission, Airship AI said it generated $8.1 million in revenue during the first nine months of 2023. Last year, two customers represented a combined 45% of Airship AI's 2022 revenue, which totaled $14.5 million from 45 customers.
"We believe a public listing will provide Airship AI with enhanced visibility, selling opportunities and financial flexibility to perform its business plan and broaden its customer base," BYTE CEO Sam Gloor said in the June release.
SPACs, also called "blank-check companies," are companies formed without a specific business line but are traded publicly. They have the goal of merging with an existing private company and taking that company public. Local companies such as Rover, Leafly and Porch have all gone public through SPAC deals.
SPAC mergers spiked during 2020 and 2021, but their popularity has plummeted during the current market downturn.
