ST. PETERSBURG, Fla. - Webull Corporation, a prominent digital investment platform, announced today it has entered into a definitive business combination agreement with SK Growth Opportunities Corporation (NASDAQ: SKGR), a special purpose acquisition company. This transaction is set to value Webull at an estimated pro forma enterprise value of $7.3 billion.
Webull, established in 2018 and now serving 20 million registered users globally, is recognized for its robust trading tools and zero-commission trading model in the United States. The platform saw significant activity in 2023, with $370 billion in equity notional volumes and 430 million options contracts traded.
The merger, which has been unanimously approved by the boards of both companies, is anticipated to close in the second half of 2024. It is subject to customary closing conditions, including regulatory and shareholder approvals. Post-merger, Webull intends to operate under the same name, with its ordinary shares expected to list on NASDAQ under a new ticker symbol.
Anquan Wang, CEO of Webull, expressed confidence that the partnership with SK Growth aligns with their vision to become the preferred platform for a new generation of investors. Richard Chin, CEO of SK Growth, also conveyed enthusiasm for the merger, noting Webull's strong performance in the FinTech industry.
The combined entity aims to leverage Webull's digital trading platform, which offers advanced market data, charting tools, and a user-friendly interface across various devices. The transaction does not include a minimum cash condition, and Webull's shareholders are expected to retain approximately 98% ownership in the combined company, assuming a $100 million contribution from SK Growth's trust account.
This strategic move marks a significant milestone for Webull, as it leverages SK Growth's experience to expand its presence in the digital investment space.
The news is based on a press release statement.
InvestingPro Insights
As Webull Corporation prepares to merge with SK Growth Opportunities Corporation (NASDAQ: SKGR), investors are closely monitoring the financial health and market performance of SKGR. According to InvestingPro data, SKGR has a market capitalization of $284.01 million and is currently trading at a P/E ratio of 30.97, reflecting a higher earnings multiple based on the last twelve months as of Q3 2023. This valuation metric suggests that investors may be expecting higher future growth from the company.
One of the key InvestingPro Tips highlights that SKGR is trading with low price volatility, which could be appealing to investors looking for stability in their investment. However, it's important to note that the company has been grappling with weak gross profit margins and short-term obligations that exceed its liquid assets, posing potential risks that need to be considered.
Despite these challenges, SKGR has been profitable over the last twelve months, with a reported basic and diluted EPS (Continuing Operations) of $0.30. This profitability, alongside the company's strategic move to merge with Webull, could be a sign of potential upside for investors who are considering this opportunity. It's worth mentioning that SKGR does not pay a dividend, which might influence the investment strategy of income-focused shareholders.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that can provide further insights into SKGR's financial health and market performance. To explore these tips and make a more informed investment decision, visit InvestingPro. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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