Digital intelligence company Cellebrite DI to go public via SPAC merger

Israeli digital intelligence company Cellebrite DI has agreed to merge with TWC Tech Holdings II Corp., a publicly traded special purpose acquisition company (SPAC), in a deal that values the combined company at nearly $2.4 billion.

Courtesy of the deal, Cellebrite will become a publicly listed company with trading on the Nasdaq under the “CLBT” ticker symbol.

Cellebrite helps public and private sector customers such as federal, state, and local public safety agencies and private sector firms to handle digital intelligence (DI) in legally allowed investigations.

Clients can solve cases quicker and more efficiently than before using its end-to-end integrated digital intelligence investigative platform, claimed Cellebrite. This is through the digitization of the complete investigative lifecycle and fast tracking outcomes within the justice system, said the digital intelligence company.

Cellebrite claims that its solutions have been bought by 6,700 public safety agencies and private sector enterprises in 140 plus countries and have aided in millions of investigations across the world.

The digital intelligence platform had revenues of around $195 million in Fiscal 2020. It estimates revenues of about $283m in Fiscal 2022.

After completion of the merger, the management team of the Israeli digital intelligence provider will continue to run the business with Yossi Carmil serving as CEO.

Yossi Carmil said: “Cellebrite’s vision is to provide industry-leading technology and a holistic DI solution that enables our customers to transform and digitize their entire investigative process. Today marks an exciting step for our company and team, and will put us in an even better position to capture the opportunities ahead.

“As a result of the transaction, we will seek to build upon our leadership position by making strategic, targeted investments to expand our capabilities, deepen our position in the public sector and attract new customers in the growing private sector market.”

Digital intelligence company Cellebrite DI to merge with TWC Tech Holdings II in $2.4bn deal. Photo courtesy of Gerd Altmann from Pixabay.

Post-merger, the digital intelligence platform will gain total cash of $580 million, which includes TWC Tech Holdings’ cash held in trust. The deal includes a private investment of around $300 million in Cellebrite ordinary shares that will be directly bought from the firm’s existing shareholders, who are mainly its early investors.

The participating institutional investors in the private investment are Light Street Capital, Makena Capital, and Axon Enterprise.

Cellebrite will use the cash proceeds from the deal for fast tracking its ability to implement its significant near-term growth opportunities, develop new customer solutions, and grow its end-market presence.

Adam Clammer – CEO of TWC Tech Holdings, which is sponsored by private equity firm True Wind Capital, said: “At True Wind Capital we are focused on investing in leading technology companies, and the Cellebrite opportunity ticks all the boxes on our wish list for a long-term investment in a public company. Cellebrite empowers public and private sector customers to drive digital transformation of the investigative workflow through its advanced technology.

“Importantly, Cellebrite’s technology helps bring justice to victims of crimes, including cases of child exploitation, violent crimes such as homicide and sexual assault, drug and human trafficking, fraud and financial crime.”

The merger is subject to approval by shareholders of both the companies and the meeting of the closing conditions.