Cellebrite to go public through a SPAC merger at a $2.4 billion valuation

Israel-based digital intelligence company Cellebrite Mobile Synchronization Ltd. is set to go public on Nasdaq via a merger with a special purpose acquisition company (SPAC) called TWC Tech Holdings Corp II.

Once the merger is completed, Cellebrite will begin to be traded under the CLBT ticker symbol with a post-merger valuation estimated at $2.4 billion.

The deal is expected to raise up to $480 million in cash for the company and includes a private investment of approximately $300 million in Cellebrite ordinary shares that will be purchased directly from existing shareholders of Cellebrite who are primarily from early investors. In 2020, Cellebrite recorded $195 million in revenues and predicts to increase that to $283 million in 2022.

Founded in 1999 and based in Israeli central town Petah Tikva, Cellebrite is owned by mobile data and entertainment company Sun Corporation, which sold a 25% stake in the company to Tel Aviv-based Israel Growth Partners (IGP) Ltd. for $110 million in June 2019. In January of this year, Cellebrite acquired San Jose, California-based forensic analytics company BlackBag Technologies Inc. for $33 million.

Cellebrite has 700 employees, 500 of which are based in Israel. The company's headquarters and R&D center are located in Israel, with the company selling its digital forensics products to 6,700 public safety agencies and private sector enterprises in over 140 countries.

“Cellebrite’s vision is to provide industry-leading technology and a holistic DI solution that enables our customers to transform and digitize their entire investigative process. Today marks an exciting step for our company and team, and will put us in an even better position to capture the opportunities ahead. As a result of the transaction, we will seek to build upon our leadership position by making strategic, targeted investments to expand our capabilities, deepen our position in the public sector and attract new customers in the growing private sector market," said Cellbrite CEO Yossi Carmil.

Adam Clammer, Chief Executive Officer of TWC Tech Holdings, said: “At True Wind Capital we are focused on investing in leading technology companies, and the Cellebrite opportunity ticks all the boxes on our wish list for a long-term investment in a public company. Cellebrite empowers public and private sector customers to drive digital transformation of the investigative workflow through its advanced technology. Importantly, Cellebrite’s technology helps bring justice to victims of crimes, including cases of child exploitation, violent crimes such as homicide and sexual assault, drug and human trafficking, fraud and financial crime. We are proud to be partnering with a company that is having a real impact on these issues.”