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Notable and Highly Successful Reverse Mergers

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Today, there is an entire industry of investment bankers and entrepreneurs specializing in the execution of Reverse Mergers.

  • Armand Hammer, the world-renowned oil magnate and industrialist, is widely credited with pioneering the concept of the Reverse Merger.
    In the 1950s, Hammer invested in a company through which he merged the long-standing winner Occidental Petroleum.

  • Warren E. Buffett merged his textile company Berkshire Hathaway with the insurance firm National Indemnity Company (NICO) in 1967.
    This was a decisive move that allowed Berkshire Hathaway to leverage its insurance float to invest in other companies.
    The transformation from a textile manufacturer into a diversified investment holding company began with the acquisition of National Indemnity Company in 1967.

  • In 1970, Ted Turner completed a reverse merger with Rice Broadcasting, which later evolved into Turner Broadcasting.

  • Acclaim Entertainment (AKLM) completed a reverse merger in 1994 with the dormant Tele-Communications Inc.

  • In 1996, Muriel Siebert, known as the first female member of the New York Stock Exchange, took her brokerage public by merging with J. Michaels, a defunct Brooklyn-based furniture company.

  • One of the so-called fallen angels of the dot-com era, Rare Medium (RRRR), merged with a small refrigeration company in 1998 and completely transformed its business.
    The $2 stock later surged to over $90 by 2000.

Recent Reverse Mergers

  • Burger King (2012) ↔ Justice Holdings (SPAC / shell) – Agreement signed April 3, 2012; listed on NYSE as Burger King Worldwide.
    PR Newswire | MarketScreener

  • Virgin Galactic (2019) ↔ Social Capital Hedosophia (IPOA) – Merger completed October 25, 2019; became the first publicly traded commercial human spaceflight company (NYSE: SPCE).
    Investor Relations | SEC Filings

  • DraftKings (2020) ↔ Diamond Eagle Acquisition Corp. (DEAC) – Business combination closed; began trading April 24, 2020 (NASDAQ: DKNG).
    DraftKings | SEC Filings

  • Nikola (2020) ↔ VectoIQ Acquisition Corp. – Merger completed June 3, 2020; listed on NASDAQ.
    PR Newswire | SEC Filings

  • Opendoor (2020) ↔ Social Capital Hedosophia II (IPOB) – Deal completed December 18, 2020; trades as Opendoor Technologies (NASDAQ: OPEN) since December 21, 2020.
    Business Wire | Opendoor Investor Relations

  • Lordstown Motors (2020) ↔ DiamondPeak Holdings (DPHC) – Approved October 22, 2020; began trading October 26, 2020 (NASDAQ: RIDE).
    Investor Relations | SEC Filings

  • Canoo (2020) ↔ Hennessy Capital Acquisition Corp IV (HCAC) – Closed December 21, 2020; ticker GOEV.
    PR Newswire

  • SoFi (2021) ↔ Social Capital Hedosophia V (IPOE) – Transaction completed May 28, 2021; listed as SoFi Technologies (NASDAQ: SOFI).
    SoFi Investor Relations

  • Clover Health (2021) ↔ Social Capital Hedosophia III (IPOC) – Approved January 6, 2021; listed as NYSE: CLOV.
    Business Wire

  • Lucid Motors (2021) ↔ Churchill Capital Corp IV (CCIV) – Closed July 23, 2021; began trading July 26, 2021 (NASDAQ: LCID).
    Lucid Motors | PR Newswire

Detailed Case Examples

Lucid Group (merger with Churchill Capital Corp IV – a SPAC) 2021

Company name: Lucid Group (electric vehicle manufacturer)
Year of the reverse merger: 2021 (completed in July 2021)
Background: Lucid Motors merged with the SPAC Churchill Capital Corp IV. The transaction provided Lucid with substantial financing for the production of its luxury electric vehicles. After de-SPACing, the stock experienced volatile but at times very strong performance.

Links/Publications:
CNBC: https://www.cnbc.com/2021/07/26/lucid-motors-merger-with-spac-churchill-capital-corp-iv-is-complete.html
SEC filing (Form 8-K): https://www.sec.gov/Archives/edgar/data/1811414/000119312521226788/d189422d8k.htm

SoFi Technologies (merger with Social Capital Hedosophia Holdings Corp. V – a SPAC) 2021
        Company name: SoFi Technologies (fintech company)
        Year of the reverse merger: 2021 (completed in June 2021)
        Background: SoFi, a well-known online financial services company, went public via
        a SPAC merger with Social Capital Hedosophia Holdings Corp. V, led by Chamath
        Palihapitiya. This was one of the largest SPAC transactions in the fintech space.

Links/Publications:
Business Wire: https://www.businesswire.com/news/home/20210601005295/en/SoFi-Technologies-Inc.-Completes-Business-Combination-with-Social-Capital-Hedosophia-Holdings-Corp.-V
Investor Relations: https://investors.sofi.com/ (press releases)

Polestar (merger with Gores Guggenheim, Inc. – a SPAC) 2022
        Company name: Polestar (electric car manufacturer, Volvo spin-off)
        Year of the reverse merger: 2022 (completed in June 2022)
        Background: Polestar, the Swedish performance electric vehicle manufacturer,    
        went public on the Nasdaq through a merger with the SPAC Gores Guggenheim, Inc.  
        The goal was to raise capital for global expansion and the development of new  
        models.

Links/Publications:
PR Newswire: https://www.prnewswire.com/news-releases/polestar-completes-business-combination-with-gores-guggenheim-inc-301574044.html
Polestar Investor Relations: https://investors.polestar.com/

    DigitalBridge (merger with DataBank Holdings Ltd. – a complex transaction that
    indirectly had similar effects) 2022
        Company name: DigitalBridge (formerly Colony Capital, investment firm for digital
        infrastructure)
        Year of the reverse merger/transaction: 2022 (majority acquisition of DataBank to
         focus even more strongly on digital infrastructure). It was not a classic SPAC merger,
         but a significant strategic restructuring that is often compared to the repositioning
         effect of a reverse merger.
        Background: Although not a classic reverse merger in the sense of a “going public”
        transaction, DigitalBridge underwent a comprehensive transformation to focus
        entirely on digital infrastructure. The acquisitions and divestitures (such as the
        majority acquisition of DataBank) fundamentally repositioned the company, akin to
        the realignment effect of a reverse merger.

Links/Publications:
 DigitalBridge press release (2022): https://ir.digitalbridge.com/news-releases/news-release-details/digitalbridge-announces-agreement-acquire-majority-interest-databank
Article on the transformation: https://www.datacenterdynamics.com/en/news/colony-capital-rebrands-as-digitalbridge-after-exiting-legacy-assets/

Intuitive Machines (merger with Inflection Point Acquisition Corp. – a SPAC) 2023
        Company name: Intuitive Machines (space company, lunar landings)
        Year of the reverse merger: 2023 (completed in February 2023)
        Background: Intuitive Machines, known for its lunar landing missions under NASA’s
        CLPS program, went public via a merger with the SPAC Inflection Point Acquisition
        Corp. The stock saw a significant rise following the success of its first lunar landing
        in 2024.

Links/Publications:
Intuitive Machines press release: https://www.intuitivemachines.com/press-releases/intuitive-machines-completes-business-combination-and-is-now-a-publicly-traded-company
TechCrunch: https://techcrunch.com/2023/02/13/intuitive-machines-has-gone-public-ahead-of-its-first-moon-mission/

Getty Images (merger with CC Neuberger Principal Holdings II – a SPAC) 2023
        Company name: Getty Images (photo and video database)
        Year of the reverse merger: 2023 (completed in July 2022, but an important year for
         performance)
        Background: Although the closing took place in mid-2022, 2023 was the first full
        fiscal year as a publicly traded company via the SPAC route. Getty Images is an
        established name, and the transaction enabled the company to pursue its growth
        strategy as a public company.

Links/Publications:
Getty Images Investor Relations: https://ir.gettyimages.com/news-releases/news-release-details/getty-images-completes-business-combination-cc-neuberger
Bloomberg (mention of post-SPAC performance): https://www.bloomberg.com/news/articles/2023-08-09/getty-images-plunges-on-weak-profit-outlook-after-spac-merger