Summer Myatt
GigCapital4 has entered into a $75 million backstop agreement with AE Industrial Partners to support its pending business combination with BigBear.ai.
Under the agreement, an affiliate of AE Industrial Partners will purchase up to 7.5 million shares of GigCapital4 stock at $10 per share, BigBear.ai and GigCapital4 said Tuesday.
Additionally, BigBear.ai’s rollover equity has been adjusted to $1.05 billion, which represents a 15 percent reduction that reflects current market conditions and establishes a more attractive entry point to market.
Reggie Brothers, CEO of BigBear.ai and a 2021 Wash100 Award winner, said the company will leverage its partnership with GigCapital4, AE Industrial Partners and the purchasers of the company’s shares to create significant value as a public company.
“We are well positioned to accelerate our progress and take advantage of a rapidly growing addressable market, and today’s announcement reflects our commitment to delivering significant value for GigCapital4 shareholders as well as future shareholders of BigBear.ai,” GovCon Expert Brothers explained.
BigBear.ai’s third quarter financial results reported over $150 million in new contract awards, adding to its total backlog as of September 2021 of more than $485 million.
Raluca Dinu, CEO of GigCapital4 and founding managing partner of GigCapital Global, cited BigBear.ai’s “consistent backlog growth and major contract awards” as evidence of the company’s momentum and growth trajectory as it plans to complete its business combination with GigCapital4 and become a publicly traded company.
The transaction is expected to close on Dec. 7, following a scheduled stockholder meeting on Dec. 3 to approve the proposed merger.
