Israel Acquisitions Corp. (Nasdaq: ISRL), a publicly-traded special purpose acquisition company (SPAC) founded by Izhar Shay and Ziv Elul, and Israeli image technology company Pomvom Ltd. (TASE: PMVM), today announced a definitive business combination agreement at a total equity value for Pomvom of $125 million. The merged company will delist from the TASE and trade on Nasdaq and with the expertise of the ISRL team, leverage Pomvom's platform, which offers amusement parks, and event organizers a solution encompassing a range of services for photographing visitors.
Pomvom serves many of the largest theme park and attraction operators globally, including, parent companies Six Flags, Warner Bros., and Merlin Entertainment. Strategic long-term agreements signed in 2023 with Warner Bros. and Six Flags are expected to increase the number of partner sites for Pomvom to 47 sites by the end of 2024, a 23% increase from its current 38 sites, and to accelerate growth in 2024. Pomvom's launch of digital content across its partner sites is expected to leverage its new online platform and accelerate long-term growth.
Pomvom revenue in 2022 was NIS 192.7 million ($57.4 million). For the nine months ending September 2023 revenue totaled NIS 165.1 million ($45.3 million), with revenue from its digital platform of NIS 57 million ($15.6 million), or 34% of total revenue, representing 139% growth compared with revenue of NIS 23.8 million ($7.1 million), in the corresponding period 2022, or 16% of total revenue. On completion of the deal, including a capital injection of at least $20 million from the business combination, Pomvom aims to achieve a growth plan based on existing contracts and potential new wins in 2024, targeting at least a 30% increase in revenue, with a 2024 expectation of reaching a positive adjusted EBITDA.
ISRL chairman Izhar Shay said, "The business combination agreement signifies a momentous step forward, aligning with the vision set when we took our SPAC public last year. We believe Pomvom's unique combination of technology, product innovation, and creative content design positions the company to capitalize on multiple growth opportunities in the Immersive Location-based entertainment experiences industry, both in the US and worldwide. Collaborating together, we expect Pomvom to become a strategic partner of the largest amusement parks, attractions, and entertainment groups globally in coming years."
Pomvom's founder and CEO Yehuda Minkovicz added, "This business combination is a significant milestone for Pomvom, reflecting the confidence of key figures in the high-tech and financial industries in Israel and the US. We look forward to work collaboratively to complete the transaction, with a shared objective of accelerating Pomvom's technology development and global presence in the coming years. I would like to extend my gratitude to Pomvom's and ISRL's teams for their efforts, dedication and perseverance, in advancing this merger despite the challenging times in Israel."
Pomvom was founded by Minkovicz in 2015 and held an IPO on the TASE in March 2021, raising NIS 38 million at a company valuation of NIS 135 million, post money.
Published by Globes, Israel business news - en.globes.co.il - on January 2, 2024.
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