The Islanders co-owner has filed to launch Pivotal Investment Corp III, a blank check firm seeking $200 million to acquire a business in “logistics technology and ‘last mile’ delivery services, business technology services, on-line cyber security and off-line physical security services, media and entertainment services and franchise businesses,” according to the prospectus filed this morning with the Securities and Exchange Commission.
The blank check business is Ledecky’s second new SPAC filing of the past week and the executive’s 12th effort overall, according to information contained in the prospectus. His prior Pivotal-named SPAC, Pivotal II, brought truck-electrification firm XL Fleet public. XL’s stock is up 98% since the deal was announced in September. A few days prior to XL’s listing, another SPAC from the New York City native—Northern Star—struck a deal to acquire pet subscriptions service BarkBox. Ledecky has formed SPACs as far back as 2005, including three in 2007 which never completed their IPO due to market conditions.
The Pivotal SPAC proposed today features participation by Katrina Adams, former chairman of the board and president of the U.S. Tennis Association. At the USTA she forged a trifecta of milestones: being the first African-American, first former tennis pro and youngest person to serve as president of the USTA in its 135-year history. Adams also was involved in the XL Fleet SPAC with Ledecky.
Pivotal III’s chief financial officer will be James Brady, an attorney who previously served as an executive at a number of start-ups, including probiotic company VSL Pharmaceuticals. Joining the board will be Kevin Griffin, CEO of MGG Investment Group, a lender to businesses, and prior participant in SPACs with Ledecky. Tech entrepreneur and MIT Media Lab researcher Sarah Sclarsic is also part of the SPAC. Sclarsic, Griffin and Adams comprise the board of directors with Ledecky as its chairman.
While searching in its defined sectors, Pivotal III will operate on the philosophy that many emerging and mid-sized businesses in North America will be disrupted by changing consumer behaviors and the evolution of digital technology. “Most of these middle market and emerging growth companies will ultimately need to consolidate to achieve the scale necessary to attain high revenue growth and attractive profitability,” the company stated in its business proposal.
Ledecky’s new SPAC joins more than 40 other blank check firms from sports business executives that are on the market searching for businesses to take public. Typically, a SPAC raises capital at an IPO then merges with a business that wants to go public without the complexities of its own IPO.
(This story has been updated with details of XL’s stock price in the third paragraph.)