FiscalNote, Backed By Mark Cuban, Jerry Yang, Steve Case And S&P Global, Announces SPAC Merger

Data and analytics company FiscalNote is going public in a SPAC merger announced Monday morning.

The SPAC Deal: FiscalNote is valued at a pro forma market capitalization of $1.3 billion in a merger with Duddell Street Acquisition Corp. DSAC.

The SPAC merger includes a $100 million PIPE led by Maso Capital, an affiliate of the SPAC sponsor.

Existing investors in FiscalNote include Mark Cuban, Yahoo co-founder Jerry Yang, former AOL Chairman Steve Case, S&P Global Inc SPGI and Winklevoss Capital.

FiscalNote will trade on the Nasdaq with ticker NOTE after the merger closes. Public DSAC shareholders will own 13% of the new company.

About FiscalNote: Founded eight years ago, FiscalNote is a legal data and analytics company that analyzes government information. The company offers cloud-based software feeds and uses proprietary artificial intelligence capabilities to sort through regulatory and legislative data.

The company counts around half of the Fortune 100 as customers and has more than 3,000 global subscription customers.

Among the company’s customers are leading publicly traded companies such as Microsoft Corporation MSFT, Tesla Inc TSLA and Netflix Inc NFLX. In the U.S., the company also counts the White House, Congress, the Supreme Court, Department of Defense, CDC, NIH and the Federal Reserve as customers.

“Today’s information-overloaded world makes it challenging for teams to quickly identify, track and report relevant policy and regulatory updates efficiently as critical risks and opportunities develop,” the company said.

Related Link: November SPAC Merger Calendar: Upcoming Votes, Earnings, Stocks To Watch 

Growth Ahead: FiscalNote sees a total addressable market size of $37 billion for legal and regulatory information solutions globally.

“The market is driven by strong structural tailwinds, including the proliferation of regulatory complexity, demand for workflow efficiency and automation, need for aggregation and standardization and the democratization of analytical capabilities in law.”

FiscalNote lists geographic expansion as a targeted growth area going forward.

The company’s land and expand strategy includes upselling and cross-selling to increase recurring revenue.

FiscalNote has announced 13 acquisitions since 2015, including seven in 2021. The company plans on continuing to use acquisitions to grow out its business.

Financials: FiscalNote had revenue of $65 million in fiscal 2020. The company is projecting revenue of $108 million in fiscal 2021 and a compounded annual growth rate of 55% from 2021 through 2023.

The company sees gross margins hit 82% in fiscal 2022 and positive EBITDA in fiscal 2023.

Government customers represented 24% of revenue in 2020, followed by health care at 14%. All other sectors were 5% or less of revenue.

DSAC Price Action: Duddell Street Acquisition shares are down 0.60%% to $9.89 on Monday afternoon at publication.

Photo by Dylan Gillis on Unsplash