AI Specialist BigBear Is In Merger Talks With GigCapital4 SPAC

Bookmark, an artificial-intelligence company, is in talks to go public through a merger with GigCapital4 Inc., a blank-check firm, according to people with knowledge of the matter.

The special purpose acquisition company is seeking to raise equity and convertible debt to support a deal that’s set to value the combined entity at more than $1.5 billion, said one of the people. Terms could change and as with all transactions that aren’t yet finalized, it’s possible talks could collapse.

Columbia, Maryland-based BigBear’s projected 2021 revenue is $150 million to $200 million, one of the people said. The company says it is a provider of artificial intelligence and machine learning, advanced analytics, data science and management to U.S. government clients including the Department of Defense and intelligence agencies.

BigBear, led by Reggie Brothers, was formed through the merger of NuWave Solutions and PCI Strategic Management, portfolio companies of private equity firm AE Industrial Partners LP, according to a February statement. AE acquired both companies last year.

A spokeswoman for both BigBear and AE Industrial Partners and a GigCapital representative declined to comment.

GigCapital4, led by Chairman Avi Katz and Chief Executive Officer Raluca Dinu, raised about $359 million in an February initial public offering with a focus on technology, media, telecommunications and sustainable industries.

Earlier GigCapital vehicles have agreed to take other companies public, including Lightning eMotors Inc., Kaleyra Inc., UpHealth Holdings Inc. and Cloudbreak Health LLC.

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