Next Generation GPS Company NextNav Lands SPAC Deal: What Investors Should Know

A GPS company that helps companies with location mapping is going public in a deal announced Thursday morning. 

The SPAC Deal: NextNav announced a SPAC merger with Spartacus Acquisition Corporation TMTS. The merger values NextNav at a pro forma enterprise value of $900 million.

Gary Parsons, the former Chairman of the Board for SiriusXM Holdings Inc SIRI, is the Chairman of NextNav and will continue to lead the company.

If the merger is approved, shares of NextNav will trade on the Nasdaq with the ticker NN. Current public TMTS shareholders will own 17% of the company.

About NextNav: NextNav works in the GPS sector with the goal of developing services that deliver 3D location intelligence.

The company’s current roster of blue chip customers and partners includes AT&T Inc T, Motorola Mobility, Joby Aviation and Epic Games.

NextNav has several GPS products, including one that's already deployed in 4,400 cities, according to the company. The company owns technology and intellectual property that includes nationwide spectrum licenses for 2.4 billion MHz-PoPs of 900 MHz spectrum.

The company’s services include Pinnacle (altitude only) and TerraPoiNT (full 3D position). TerraPoiNT is the highest ranked position, navigation and timing network recognized the Department of Transportation, the company said.

“NextNav’s internationally standardized terrestrial next generation GPS platform is proven and poised to be the global solution for locations and timing services serving the mobile app economy, enterprise and public safety customers worldwide,” the company said.

Growth Ahead: The SPAC merger will provide around $408 million to NextNav. The proceeds are expected to be used to help with a next generation, 3D geolocation platform developed by NextNav.

The company sees a total addressable market of $100 billion across several key sectors. Target areas for the company’s GPS products include rideshare apps, delivery apps, indoor mapping, autonomous vehicles, eVTOLs, UAVs, critical infrastructure and public safety.

NextNav helps enable the app economy, which was a $3.7 trillion segment in 2021, according to the company’s presentation. One out of every three apps downloaded on Google Play uses some form of location services.

Financials: NextNav is forecasting revenue of $2 million in fiscal 2021 and $24 million in fiscal 2022. The company projects a large ramp up with mass market apps beginning in 2022.

The company forecasts revenue of $506 million in fiscal 2026.

Price Action: Shares of TMTS are up 1% to $10.05 Thursday.