US fixed-wireless access (FWA) provider Starry has entered into a definitive merger agreement with FirstMark Horizon Acquisition Corp, a special purpose acquisition company sponsored by an affiliate of FirstMark Capital. Upon completion of the mergers contemplated therein, the combined company will continue to operate as Starry and will be listed on a national exchange under the ticker symbol ‘STRY’.
The transaction implies a pro forma enterprise value of USD1.66 billion and will give Starry USD452 million in cash on the balance sheet (assuming no redemptions of the common stock held by FirstMark’s stockholders). The latter figure includes USD130 million from a fully committed Private Investment in Public Equity (PIPE) and contemporaneous equity round in Starry, that includes ArrowMark Partners, Atreides Management, Fidelity Management & Research Company, Tiger Global Management, and affiliates of FirstMark Capital. This funding will be used to fund the company’s growth and the deployment of its services across the US, and to retire Starry’s existing debt.
Founded in 2014, Starry’s network currently covers more than 4.7 million US households across six markets, namely: Boston, New York, Los Angeles, Denver, Columbus and Washington DC. Going forward, the ISP is planning a rapid expansion programme and aims to cover 25 million households by 2026, with a projected 1.4 million residential and small business subscribers.