Tomorrow.io Pays $1.5M to Terminate SPAC Deal
Weather intelligence company Tomorrow.io’s SPAC merger is off. Tomorrow.io and special purpose acquisition company (SPAC) Pine Technology Acquisition Corp. announced Monday that they have agreed to terminate their merger agreement “due to market conditions.”
According to filings with the Securities and Exchange Commission (SEC), Tomorrow.io has agreed to pay the company $1.5 million as part of the termination agreement. Pine Technology Acquisition Corp. plans to continue to pursue a SPAC deal with an appropriate target.
Tomorrow.io and Pine Technology Acquisition Corp announced the SPAC deal in December 2021 at a $1.2 billion valuation. Tomorrow.io plans to launch a constellation of 32 radar-equipped satellites to collect global precipitation data, and the SPAC was pitched as a way to fund the constellation.
Tomorrow.io sells software that helps companies and governments deal with the business impact of weather. It takes traditional weather data provided by governments around the world, and uses a proprietary forecasting model that translates it into actionable data. The company has about 120 enterprise customers today, including Delta Air Lines, Ford Motor Company, and Amazon Web Services (AWS), and reported approximately $11 million in revenue in 2021.
Earlier this year, Co-founder and Chief Strategy Officer Rei Goffer spoke with Via Satellite about the company’s decision to build a satellite constellation.
“We are a software company in a certain vertical, which we know and understand very well, and we have customers. We identified a gap that can be solved from space, and so our journey to space is a means to an end,” Goffer said. “We’re very proud to go into space as a software company that will remain a software company, taking leverage of space.”