SPACs are Back: Data Shows Activity Ahead

Reports of SPACs’ demise are greatly exaggerated. A trio of recent deals demonstrate the persistence of SPACs as companies continue to go public despite economic headwinds:

  1. Fertility clinic NewGenIvf went public via a $50 million acquisition by A SPAC I Acquisition Corp.;
  2. Tool manufacturer Drilling Tools International went public via a $319 million acquisition by ROC Energy Acquisition Corp.; and
  3. Insurance technology company Roadzen went public via a $683 million acquisition by Vahanna Tech Edge Acquisition I Corp.

Analysts have warned of the “blank check bust.” Indeed, they have declined from their dizzying heights of 2020-2021, when the Federal Reserve’s pandemic interest rate cuts flooded the markets with cash. During that period, investors poured that cash into SPACs in search of returns – while companies seized the opportunity to go public while sidestepping the rigors and delays of a traditional initial public offering. SPACs’ surge brought with it increase regulatory scrutiny.

SPAC IPOs in US (2003 to January 2023)


Then 2022 struck. Interest rates climbed and adverse market conditions sent investors running for cover. SPAC activity dropped precipitously. However, they remain a force to be reckoned with: as of the end of February 2023, there are still about 335 blank-check companies holding a combined $72 billion in pursuit of deals. Many of these SPACs need to find their target in this first quarter before being forced to return their cash to investors. This means we should expect the flurry of deals to continue into March and beyond. As the Boston Consulting Group predicts, “With so many SPACs under pressure to hook up, potential targets have an opportunity to strike favorable deals.”


This impending activity means additional billable hours for their law firms, many of which have sought to defend SPACs from further regulation. According to Matterhorn’s comprehensive M&A database, which harnesses AI to track current and historical deals, A SPAC I Acquisition Corp. is represented by firms Loeb & Loeb LLP and Haiwen & Partners while NewGenIvf Limited is advised by Jun He Law Offices; ROC Energy Acquisition Corp. is advised by Winston & Strawn LLP while Drilling Tools International Holdings, Inc. is advised by Bracewell LLP; and Vahanna Tech Edge Acquisition I Corp. is advised by firms Gibson, Dunn & Crutcher LLP and DMD Advocates while Roadzen, Inc. is advised by Winston & Strawn LLP.