Forbes announced Thursday that it will become a public company in a deal with special purpose acquisition company Magnum Opus that values the combined operation at $630 million.
The deal is expected to raise approximately $600 million — approximately $200 million of cash held in Magnum Opus’ trust account and $400 million of additional capital through a private placement of ordinary shares priced at $10 per share.
Forbes shareholders will own approximately 22 percent of the combined company at closing. Forbes will be capitalized with up to $145 million in cash.
“With this transition into a publicly traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy and fully realize the potential of our iconic brand,” said Forbes CEO Mike Federle in a statement.
The combined company will announce new, independent members to its Board of Directors at a later date.
This is the third ownership structure for Forbes in the 21st century.
In 2006, investment group Elevation Partners that includes rock star Bono bought a minority interest in the company.
In July 2014, the Forbes family bought out Elevation. Hong Kong-based investment group Integrated Whale Media Investments then purchased a 51 percent majority of the company.
Integrated Whale Media will remain a significant investor in the new company.
The magazine, which was founded in 1917 by Bertie Charles Forbes, now has 45 licensed editions covering 76 countries. Forbes is among the top 50 most visited websites on the internet.
The deal is expected to close late in the fourth quarter of 2021 or early in the first quarter of 20202.
