Israeli digital freight booking and management company Freightos Limited, and special purpose acquisition company Gesher I Acquisition Corp., announced on Tuesday that they have entered into a definitive merger agreement that would publicly list Freightos on the NASDAQ under the ticker FROS with a pro forma enterprise value of approximately $435 million.
The business merger is expected to generate at least $80 million in gross proceeds and potentially up to $166 million depending on redemptions, which will be used to fund Freightos’ growth plan. The implied pro forma equity value of the combined company is expected to be at least approximately $500 million. Existing Freightos shareholders are estimated to own up to 78 percent of the combined company after funding.
The capital raised from the transaction will be invested to further scale the business, driving transaction value and improving margins.
Founded in 2011, Freightos expands and aims to make freight procurement more reliable and efficient by establishing connections between hundreds of airlines, ocean liners, and trucking companies, as well as thousands of freight forwarders, importers, and exporters through a transparent digital platform that enables real-time freight pricing, booking, and shipment management. The company’s portfolio includes clients such as Qatar Airways, Alibaba, FedEx, and United Airlines, among others.
“Global freight moves the world,” said Zvi Schreiber, CEO of the Freightos Group. “Last year, $22 trillion worth of goods crossed borders, but we have all witnessed what happens when shipping doesn’t run smoothly, creating inventory shortages and increasing prices that challenge businesses and consumers globally. This presents a massive opportunity to digitize one of the last large offline industries.”
“Our combination with Gesher and access to public markets will allow Freightos to continue to aggressively scale our platform and lead as an international freight booking and payment tool of choice,” said Schreiber. “This day represents new opportunities for the Freightos team around the world, whose diligence and dedication has made Freightos what it is today.”
“Freightos is modernizing the global shipping industry as a true innovator in the logistics space,” added Ezra Gardner, CEO of Gesher. “It enjoys positive unit economics, high gross margins, an incredibly high growth rate, and impressive customer retention. It is distinguished by its proprietary technology, data analytics, and deep network of customers comprising some of the largest players in the global supply chain today. Following the combination, Freightos will be the only pure-play public global freight platform investment opportunity available, and we’re excited to partner with Zvi and his team on this enormous market opportunity.