Acquisitions using special purpose acquisition companies (SPACs) have been all the rage in the past couple of years. The size of the deals has been increasing steadily. Earlier this year, SomaLogic entered into a $1.23 billion business combination agreement with CM Life Sciences II—a deal in which Reed Smith advised SomaLogic, a global leader in proteomics technology. It is clear that SPACs are larger, and more impactful.
In simple terms, SPACs are publicly traded companies that exist for the purpose of acquiring private companies, thereby taking private companies public through an alternate route than a traditional IPO.
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