AERKOMM and IX Acquisition Corp announce merger and fundraising effort

In an ambitious move to enhance the landscape of satellite broadband connectivity, AERKOMM Inc. (Euronext: AKOM, OTCQX: AKOM) and IX Acquisition Corp (Nasdaq: IXAQU, “IXAQ”) have solidified their commitment through a definitive Business Combination Agreement (BCA). This collaboration, announced on March 22, 2024, aims to form a new entity named AKOM Inc. (“AKOM”), transitioning AERKOMM’s listing from Euronext/OTCQX to Nasdaq under the ticker “AKOM”, while also maintaining a secondary listing on Euronext. The partnership is bolstered by a significant $35 million private placement, marking a pivotal moment for both companies.

The agreement delineates an adjusted enterprise value of AERKOMM at $200 million, with the potential of up to $200 million in earnout shares for AERKOMM shareholders upon achieving specific milestones. Supported by a $35 million common equity PIPE (Private Investment in Public Equity) funding, the transaction is designed to fortify AERKOMM’s mission to deliver carrier-neutral, software-defined infrastructure for seamless satellite broadband connectivity across multiple orbits.

AERKOMM’s existing shareholders are expected to retain a substantial stake in the newly formed AKOM, signifying a robust confidence in the future direction of the combined entity. The anticipated Nasdaq listing further positions AKOM to execute its strategic initiatives effectively, with the completion of the transaction slated for Q3 2024, pending customary closing conditions and approvals.

AERKOMM, renowned for its innovative approach to satellite technology, has developed a reputation for providing end-to-end, multi-orbit satellite broadband connectivity solutions. The company’s collaboration with leading satellite constellation operators and mobile network operators has established a strong foothold in both the public and private sectors, including Aerospace & Defense and Civilian Telecommunications.

Louis Giordimaina, Chief Executive of AERKOMM, expressed enthusiasm about the partnership with IXAQ, highlighting the synergy between AERKOMM’s technological advancements and IXAQ’s sectoral and financial expertise. “We are well positioned to address extremely fast-growing markets…We are developing a range of pioneering multi-orbit satellite technologies with the capability to provide end-to-end broadband connectivity in collaboration with our satellite partners,” Giordimaina stated.

Karen Bach, Chief Executive of IXAQ, echoed this sentiment, emphasizing the strategic advantage of transitioning AERKOMM’s listing to Nasdaq and leveraging the combined expertise to capitalize on expanding market opportunities.

The strategic partnership between AERKOMM Inc. and IX Acquisition Corp represents a significant milestone in the evolution of satellite broadband connectivity. By combining AERKOMM’s technological prowess with IXAQ’s financial and sectoral expertise, the newly formed AKOM Inc. is poised to address the growing demands for reliable, high-speed internet access across diverse orbits.

As the Aerospace & Defense and Civilian Telecommunications markets continue to expand, the innovative solutions offered by AKOM will likely play a critical role in shaping the future of global connectivity. This merger not only signifies a strategic expansion for both entities but also highlights the potential for technological advancements to drive significant improvements in satellite broadband access worldwide.