Merger DUNEU

TradeZero, a Next-Generation, Active Trading Platform, to Become a Publicly Traded Company Through a Business Combination With Dune Acquisition Corporation

, SPAC Research

TradeZero, which through its U.S. and Bahamas based broker-dealers offers a next-generation trading platform targeting the global active trader community, and Dune Acquisition Corporation, announced that they have entered into a definitive agreement for their business combination, which would result in TradeZero becoming a publicly listed company.

The transaction estimates an enterprise value of $556 million, with an estimated $160 million in cash to fund organic growth and operational initiatives (assuming no redemptions).

TradeZero expects to generate $114 million of revenue and $48 million of adjusted net income in 2022.

TradeZero shareholders will roll 100% of their equity and will continue to be led by Daniel Pipitone, Co-Founder & CEO of TradeZero Holding Corp.

Under the terms of the proposed business combination, Dune will merge with TradeZero at a pro forma combined equity value of $716 million (assuming no redemptions), representing a price-to-earnings multiple of 14.9x projected net income for 2022.

The business combination is expected to close in the 1st quarter of 2022 and remains subject to approval by Dune’s stockholders and customary closing conditions.

PJT Partners is serving as financial advisor and Winston & Strawn LLP and White & Case LLP are serving as legal advisors to Dune.

Appleby Capital is serving as financial advisor and Vinson & Elkins LLP is serving as legal advisors to TradeZero.

PJT Partners, Cantor Fitzgerald, and Needham & Co. are serving as capital markets advisors to Dune.

The combined company will be called TradeZero Global Inc. upon the closing of the business combination and is expected to be listed on the New York Stock Exchange under a new ticker symbol, “TRAD”.

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