Logistics Company Transfix Announces SPAC Deal: What Investors Should Know

With a goal of building the world’s most connected and intelligent freight platform, Transfix is set to go public with a SPAC deal announced Tuesday.

The SPAC Deal: Transfix will go public via a SPAC merger with G Squared Ascend I GSQD. The deal values Transfix at a pro forma enterprise value of $1.1 billion. G Square first invested in Transfix in 2019.

The SPAC merger is expected to close in the first quarter of 2022 with shares trading under ticker TF on the NYSE.

Public GSQD shareholders will own 23.9% of the company after the merger is complete.

About Transfix: A leader in next-generation digital freight platforms, Transfix uses artificial intelligence and machine learning.

Transfix is a leader in the business-to-business marketplace, using a capacity-focused approach to provide better efficiencies for truck owners and drivers.

The company has an asset-light business model, which provides growing gross margins.

Growth Ahead: Transfix is seeking to transform a $1 trillion transportation and logistics market.

One area of growth for the company is adding strategic customers. Transfix had 58 strategic customers in 2020 that provided 89% of the company’s revenue.

An expansion pipeline includes introducing new products, launching a SaaS business model and expanding the company globally.

Transfix also plans on pursuing acquisitions, which are not priced into current financial projections.

Financials: Transfix had revenue of $184 million in fiscal 2020, up 41% year-over-year. The company counted 93% of its customers as repeat customers from the previous year.

Transfix had compounded annual revenue growth of 81% from fiscal 2016 through fiscal 2020. The company is forecasting 55% annual revenue growth from fiscal 2020 through fiscal 2025.

The company’s projected revenue forecast is $281 million for fiscal 2021 and $437 million for fiscal 2022.

GSQD Price Action: GSQD shares are up 0.82% to $9.87 in Tuesday morning trading.

Photo by Joshua Woroniecki on Unsplash