17LIVE Co-Founder Joseph Phua
Vertex Technology Acquisition Corporation (VTAC), a blank-cheque company owned by leading Singaporean VC firm Vertex Ventures, has inked a conditional sale and purchase agreement with live-streaming entertainment company 17LIVE Holding.
The combined entity will be listed on the Singapore Exchange Securities Trading (SGX-ST). VTAC will be renamed 17LIVE Group Limited after the proposed business combination.
Pursuant to the agreement, VTAC will acquire the entire issued and paid-up share capital of 17LIVE Holding for S$925.1 (US$676) million.
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The proposed merger is expected to close before January 2024, subject to regulatory and shareholder approval.
Public listing on SGX-ST will fuel the live-streaming firm’s expansion into high-growth markets such as Southeast Asia and the US.
17LIVE Holding operates 17LIVE, a pure-play live-streaming platform in Japan and Taiwan with a presence in Hong Kong, Singapore, the US, the Philippines, India, and Malaysia. It connects users with live streamers who generate content of interest through AI-powered personalised search and recommendation.
According to Frost & Sullivan, 17LIVE commanded a market share (by revenue) of 20.8 per cent in Japan and 26.9 per cent in Taiwan as of 2022.
The firm reportedly generated a positive EBITDA of US$15 million in 2022 and has reportedly been profitable. Due to revaluation (loss/gain) on the financial liabilities at fair value through profit or loss (comprising preferred shares and warrants), its profit in 2021 was US$109.5 million, and the loss in 2022 was US$51 million.
For the first half of FY2023, 17LIVE had average monthly active users (MAU) of approximately 550,000 and 87,000 live streamers.
VTAC Executive Director and CEO Jiang Hong Hui said: “17LIVE has displayed synergies through its core capabilities and presents strong growth potential in both its core live streaming businesses and the new V-Liver business, and it has been profitable since FY2020. We see 17LIVE as a company at its inflexion point, backed by a strong management bench whose professional expertise and vision will help it navigate the dynamic ecosystem.”
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17LIVE Chairman and Co-Founder Joseph Phua added: “As a technology-driven live social entertainment platform, 17LIVE has made the extensive investment to enhance its R&D capabilities and scalable technology stacks in order to effectively innovate its product offerings and ensure content and data security. We have over time refined our core capabilities whilst harnessing the vision of a live streaming ecosystem to better connect people anytime, anywhere. VTAC, with their strong expertise in technology, has today, validated this vision as we take another step towards solidifying 17LIVE’s position as an innovative leader in the space. Listing on SGX-ST will allow 17LIVE to grow its businesses in Southeast Asia and globally.”
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