The German blank check firm, 468 SPAC has entered exclusive negotiations to acquire the children’s entertainment company, Boxine, the team behind the popular Toniebox and Tonies audio system for kids.
According to Reuters, the European special purpose acquisitions company is to purchase the firm for around one billion euros ($1.2bn), a price based on a post-money valuation after new capital injections from investors.
468 SPAC, which was set up by German tech entrepreneurs, has signed a letter of intent that includes raising 100 million euros through private investment in public equity (PIPE) for Boxine, it said.
Boxine’s flagship children’s audio system, Tonies, has rocketed to success in the five years since its launch in 2016, having gained industry accolades and built up a library of audio content and stories, including licensing partnerships with some of the biggest published titles in contemporary children’s literature, including Julia Donaldson’s The Gruffalo.
Tonies has continued to expand its IP portfolio with major studios such as Disney, Universal, and most recently detailed the launch of its PAW Patrol Tonie in partnership with Spin Master Entertainment.
Meanwhile, 468 SPAC was founded by entrepreneurs with ties to Berlin startups incubator Rocket Internet, which produced some of Germany’s leading listed tech firms such as Delivery Hero, Zalando and Hellofresh.
468 SPAC’s co-founder Ludwig Ensthaler previously worked at seed investor Global Founders Capital.
Together with Florian Leibert, a U.S.-based software entrepreneur, the partners launched 468 Capital in 2020. The fund manages $200 million and has made 28 early-stage investments, according to Pitchbook.
They launched 468 SPAC 1 SE, the special-purpose acquisition company, or SPAC, that they are sponsoring, in April and raised 300 million euros.
SPACs are shell companies that raise funds in an initial public offering with the aim of merging with a private company, which becomes public as a result, providing an alternative to traditional IPOs.