Israel’s Gett ends SPAC merger and exits Russian market
Gett, an Israeli ride-sharing service, and US capital market investment firm, Rosecliff Acquisition Corp. announcement last week, the end of their SPAC (Special Purpose Acquisition Company) merger. Gett also announced that it pulled out of the Russian market on Friday.
In November 2021, Gett entered into a definitive agreement to merge with Rosecliff Acquisition, a unicorn company valued at $1 billion, a deal that was expected to close in the first half of 2022. Gett will instead forgo the $283 million that was on track to protect itself from the SPAC merger and call off the merger which it says is “resulting from current market conditions”.
Although Gett did not provide further details on those terms, the Israeli financial daily the globes said this was “probably because several Russian funds under sanctions are among the investors. One of them is Sberbank, one of the first two Russian banks on which the United States imposed sanctions. Another prominent Russian investor in Gett is Baring Vostok, a major private equity fund.
The Russian transportation and delivery market accounted for 14% of Gett’s direct gross profit in the last quarter of market year 2021, according to Globes.
“After careful consideration and consideration, we felt that exiting the Russian market was the right thing to do,” said Gett Founder and CEO Dave Waiser. “I would like to thank the SPAC team at Rosecliff and Mike Murphy, in particular, for their professional and committed support throughout this journey. I wish its experienced and motivated team continued success.
“Without the costs related to SPAC in 2022 and given our strong operational performance; we expect an accelerated path to profitability for the business as early as the third quarter of 2022, a full year earlier than originally planned,” he added. “At all times, we remain focused on disrupting the $100 billion Ground Transportation Management (GTM) category globally.”