Technology pioneers Reid Hoffman and Mark Pincus plan to raise $600 million for a new publicly traded blank-check company with the intention of merging with a technology business.
Reinvent Technology Partners is structured as a SPAC, or special purpose acquisition company. SPACs are created specifically to offer companies a way to reach the public market without going through the usual initial offering process. SPACs have a specific period of time to find a merger partner that then requires shareholder approval.
While the computer engineering definition structure has been around for many years, they have soared in popularity in 2020, and provided a route to the public market for Virgin Galactic Holdings (SPCE), DraftKings (DRFT) and Nikola (NKLA), among others.
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