US online retail company Boxed to go public in $900m SPAC deal

Boxed, Inc., an American e-commerce grocery shopping platform, has agreed to merge with Seven Oaks Acquisition Corp. in a deal that values the combined company at around $900 million.

The deal with the special purpose acquisition company (SPAC) will enable Boxed to become a publicly listed company.

Established in 2013, the company is said to make shopping for bulk consumables easy and convenient without needing a “big-box” store membership.

Boxed utilizes its end-to-end e-commerce platform to offer B2C and B2B customers a simple basket-building shopping experience.

Through its software-as-a-service (SaaS) offering, Boxed also helps other firms to tap into its artificial intelligence (AI) and robotics-driven e-commerce technology.

In January 2021, the online retail company signed a multi-year SaaS partnership agreement with Japanese retail conglomerate Aeon Group.

The e-commerce grocery shopping platform will continue to be headed by its CEO – Chieh Huang, who said: “We are excited to take this important step forward to position Boxed for our next phase of growth.

“This transaction will allow Boxed to capitalize on the tailwinds that e-commerce businesses are experiencing. This capital will also allow us to fund B2B growth, third-party marketplace expansion and drive our unique SaaS business.

“We look forward to partnering with the seasoned team at Seven Oaks as we leverage their operational and public company expertise.”

US e-commerce grocery shopping platform Boxed to merge with Seven Oaks Acquisition Corp. Photo courtesy of Tumisu from Pixabay.

Post-merger, the enlarged Boxed is likely to get net cash proceeds of $334 million through a mix of Seven Oaks Acquisition’s cash in trust of around $259 million and a fully committed private placement financing of $120 million.

Investors in the private placement include Brigade Capital Management, Onex Credit, and Avanda Investment Management.

Gary Matthews – Chairman and CEO of Seven Oaks Acquisition Corp. said: “Boxed is a phenomenal business that meets all of the criteria as a Seven Oaks investment. Our partnership with Boxed is consistent with our goal to deliver attractive and sustainable returns to our investors through a focus on growth companies that aspire to make a positive social impact.

“Boxed is a leading e-commerce platform with significant competitive advantages and multiple opportunities to accelerate growth and drive value creation. We are confident that by supporting Chieh and the talented management team with our proven operating playbook, Boxed will continue to achieve success in a rapidly growing market.”

The deal, which is subject to the approval of the stockholders of both the merging companies, certain regulatory approvals, and other customary closing conditions, is expected to be wrapped up in Q4 2021.