Boston’s Broadband firm Starry to go public in a near-$1.7 billion SPAC deal

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Boston’s Broadband firm Starry to go public in a near-$1.7 billion SPAC deal

Starry, Inc., a Boston, Massachusetts-headquartered fixed wireless broadband internet services start-up, often called as a 5G fixed wireless provider, had issued a statement later last week saying that the half-a-decade old internet provider had agreed to an SPAC (Special Purpose Acquisition Company) merger deal with a blank-check firm FirstMark Horizon Acquisition Corp., which in effect would proffer the combined entity a market valuation of $1.66 billion.

In point of fact, latest move from Starry came forth as a vindication to a sustenance of US investors’ growing interest on tech stocks, while US capital market has been hovering close to its all-time highs with prospects of further advancement in so-called growth stocks, as the US Senate had agreed to raise the Treasury Department’s borrowing authority by $460 billion earlier last week.

Nevertheless, according to the financial terms of the deal, Starry would receive a $452 million in fresh liquidities that include a $130 million in private investment through public equities alongside simultaneous equity financing rounds from high-profile investors like of Fidelity Management & Research, Tiger Global Management & Affiliates alongside other affiliates of FirstMark Capital among others.

Starry to go public in a $1.7 billion SPAC deal

On top of that, as Starry said in a statement shortly after the announcement that a fresh influx of capitals which it would receive in the proceedings, would be capitalized on branching out Starry’s services across major cities in the United States and paying off existing debts, the company co-founder and Chief Executive Chet Kanoja said, “We expect to launch in additional cities with this new capital that we're raising.

Founded back in the 2016s, Starry Inc had reported a profit growth of 187 per cent to $13 million last year, while the company had been working out an option to reach more than 26 million US households by 2026 compared to a 4.7 million households as of Q2, 2021.