Global Partner Acquisition Corp. (GPAC) has entered into a definitive merger agreement with behavioral health company Sequel Youth and Family Services. GPAC was created as a special purpose acquisition corporation.
Such “blank check” companies pool investor funds with the sole purpose of making acquisitions. Additionally, 80% of investor funds must be used in a single deal, with the approval of the investors, although investors don’t know initially how the funds will ultimately be spent.
As a result of the merger:
- GPAC will change its name to Sequel Youth and Family Services, Inc.
- Sequel will become a Nasdaq-listed public company, valued at approximately $423.3 million; and
- The Sequel management team will continue to lead the combined company.
Founded in 1999, Sequel owns 44 residential and community-based programs in 19 states, serving at-risk adolescents and adults in academy settings. The GPAC transaction is expected to close in April 2017.