© Tempo Automation Electronics Production | October 21, 2021
Tempo to go public via merger with ACE Convergence
EMS provider Tempo Automation is planning to go public via a merger with special-purpose acquisition company ACE Convergence Acquisition Corp. At closing Tempo will simultaneously acquire Advanced Circuits and Whizz Systems, Inc.
The business combination values Tempo Automation at an enterprise value of about USD 919 million, with up to USD 391 million in gross cash proceeds to the company consisting of USD 230 million from cash in trust by ACE, the companies detail in a press release. The deal with ACE will position Tempo to accelerate the data acquisition flywheel that powers its AI-directed digital manufacturing platform, and further compress timelines for its customers. The merger is expected to close in the first quarter of 2022. In addition to the merger announcement, Tempo also announces that it has entered into a definitive agreement with Compass Diversified, to acquire all of the outstanding equity interests of its majority owned subsidiary, Compass AC Holdings, the parent company of Advanced Circuits, a quick-turn printed circuit board manufacturing company. By adding Advanced Circuits’ manufacturing capabilities, Tempo’s platform becomes more vertically integrated and accumulates more manufacturing data, which we expect to further accelerate customers’ time-to-market. But Tempo isn't done, the company has also entered into a definitive agreement to acquire all of the outstanding equity interests of Whizz, a provider of electronics product design, development and manufacturing services, privately held and based in San Jose, California. Whizz’s capabilities are expected to add upstream product design services and a global footprint to support customers throughout their product development process. These acquisitions are expected to strengthen Tempo’s ability to power innovation with both design and manufacturing capabilities, while providing rich new manufacturing data for its AI software. “The growing complexity of electronics can't be overstated, and Tempo's use of software and AI in its manufacturing platform allows its customers to move at the speed of innovation. We're confident that the company will experience a strong growth trajectory as demand for on-shoring of printed circuit board prototyping and manufacturing continues to increase,” says Behrooz Abdi, Chief Executive Officer and Chairman of ACE in the press release. “Our customers are among some of the world's greatest innovators, using our platform to power initiatives that include travel to the moon and Mars,” adds Joy Weiss, President and Chief Executive Officer of Tempo. “We expect that this business combination will greatly broaden our capabilities and footprint in the market, provide substantial manufacturing data to fuel our platform and allow us to help more and more customers accelerate their innovations.” Once all transactions are completed, the combined company – which will be renamed Tempo Automation Holdings, Inc. – will be led by the Tempo management team, including President and Chief Executive Officer Joy Weiss and Chief Financial Officer Ryan Benton. Behrooz Abdi is expected to remain on the combined company’s board of directors.