Pomvom to combine with private equity firm

Getting your Trinity Audio player ready...

Israeli “experiential content” provider Pomvom Ltd. announced business combination agreement with publicly traded special purpose acquisition company Israel Acquisitions Corp. at a total equity value for Pomvom of $US125 million. The combined company will trade on the Nasdaq and leverage Pomvom’s leading technology augmented with the expertise of the ISRL team, the company said in a press release. At the closing of the transaction, Pomvom will be delisted from the Tel Aviv Stock Exchange and listed solely on the Nasdaq in the United States. The agreement is expected to close by the third quarter of 2024.

Pomvom serves many of the largest theme park and attraction operators, including, parent companies Six Flags, Warner Bros., and Merlin Entertainment. Strategic long-term agreements signed in 2023 with Warner Bros. and Six Flags are expected to increase the number of partner sites for Pomvom to 47 sites by the end of 2024.

Pomvom revenues in 2022 were approximately NIS 192.7 million ($57.4 million). For the nine months ending September 2023, its revenues totaled NIS 165.1 million ($45.3 million), with revenues from its digital platform of NIS 57 million ($15.6 million), or 34% of total revenues, representing 139% growth compared to revenues during the same period 2022 of NIS 23.8 million ($7.1 million), or 16% of total revenues. Upon completion of the transaction, including the capital injection of at least $20 million from the business combination, the Company aims to achieve a growth plan based on existing contracts and potential new wins in 2024 targeting at least a 30% increase in top-line revenues, with a 2024 expectation of reaching a positive adjusted EBITD.

 “The business combination agreement signifies a momentous step forward, aligning with the vision set when we took our SPAC public last year,” said Izhar Shay, chairman of ISRL’s Board of Directors. “We believe Pomvom’s unique combination of technology, product innovation, and creative content design positions the company to capitalize on multiple growth opportunities in the Immersive Location-based entertainment experiences industry, both in the US and worldwide. Collaborating together, we expect Pomvom to become a strategic partner of the largest amusement parks, attractions, and entertainment groups globally in coming years.”

“This business combination is a significant milestone for Pomvom, reflecting the confidence of key figures in the hi-tech and financial industries in Israel and the United States,” said Yehuda Minkovicz, Pomvom’s founder and CEO. “We look forward to working collaboratively to complete the transaction, with a shared objective of accelerating Pomvom’s technology development and global presence in the coming years. I would like to extend my gratitude to Pomvom’s and ISRL’s teams for their efforts, dedication, and perseverance, in advancing this merger despite the challenging times in Israel.”