SPAC Deep Dive, subSPAC

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SPAC Deep Dive

Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

Equity Capital Markets

<ul><li>Last year, markets were taken aback when medicare litigation firm MSP recovery announced that it was going public through a $32.6 billion SPAC merger.</li><li>The merger with Lionheart Acquisition II was the second-largest SPAC transaction at the time and was announced at a time when SPACs were booming.</li><li>However, the market has taken a turn for the worse since then, with SPAC sentiment at an all-time low, markets bracing for a recession, and regulators looking to clamp down on SPACs.</li></ul>

Last year, markets were taken aback when medicare litigation firm MSP recovery announced that it was going public through a $32.6 billion SPAC merger.The merger with Lionheart Acquisition II was the second-largest SPAC transaction at the time and was announced at a time when SPACs were booming.However, the market has taken a turn for the worse since then, with SPAC sentiment at an all-time low, markets bracing for a recession, and regulators looking to clamp down on SPACs.

What Happened to MSP Recovery’s $33 Billion Deal?

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

iShares Russell 2000 ETF / Technical Analysis

<ul>
<li>The market continues to send mixed signals - some neutral or healthy signals but some risk-off signals as well.</li>
<li>As long as the Russell 2000 index (IWM) is above $208, Russell Micro Cap index (IWC) is above $134-$135, and the S&amp;P 500 is above 4495, we cannot be bearish.</li>
<li>Treasury yields are not breaking down below 1.40%-1.45% support on the 10-year Treasury yield and 1.76% support on the 30-year Treasury yield.</li>
</ul>


The market continues to send mixed signals - some neutral or healthy signals but some risk-off signals as well.
As long as the Russell 2000 index (IWM) is above $208, Russell Micro Cap index (IWC) is above $134-$135, and the S&amp;P 500 is above 4495, we cannot be bearish.
Treasury yields are not breaking down below 1.40%-1.45% support on the 10-year Treasury yield and 1.76% support on the 30-year Treasury yield.


Continued Absence Of Breakdowns Is A Positive Sign; Many Bottoms-Up Stock Recommendations

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

<p>Datto is the leading provider of cloud-based software, backup, recovery and business continuity solutions. Managed Service Providers (MSPs) rely on Datto for mission-critical business continuity, disaster recovery, file backup and sync solutions. Tech unicorn secures, protects and provides access to mission-critical SMB data delivering solutions through extensive global network of 17,000+ MSP partners. According to IDC, by 2023 67% of SMBs will have digital transformation as a key part of IT strategy. SMBs are collecting, generating and storing data to perform mission-critical functions.</p><p style="text-align: justify;">Datto plans to use all of the net proceeds of this IPO to repay outstanding borrowings of ~$600 million under Credit Facilities. Interest expenses totaled more than $100 million for the last 2.5 years and paying off the borrowings may significantly improve profitability and operating cash flows of the company. Lead underwriters of the deal are Morgan Stanley, BofA Securities, Barclays and Credit Suisse.  </p>

Datto is the leading provider of cloud-based software, backup, recovery and business continuity solutions. Managed Service Providers (MSPs) rely on Datto for mission-critical business continuity, disaster recovery, file backup and sync solutions. Tech unicorn secures, protects and provides access to mission-critical SMB data delivering solutions through extensive global network of 17,000+ MSP partners. According to IDC, by 2023 67% of SMBs will have digital transformation as a key part of IT strategy. SMBs are collecting, generating and storing data to perform mission-critical functions.Datto plans to use all of the net proceeds of this IPO to repay outstanding borrowings of ~$600 million under Credit Facilities. Interest expenses totaled more than $100 million for the last 2.5 years and paying off the borrowings may significantly improve profitability and operating cash flows of the company. Lead underwriters of the deal are Morgan Stanley, BofA Securities, Barclays and Credit Suisse.  

Datto Holding IPO. Largest MSP Technology Unicorn With A Clear Path To Profitability

United States

Datto Holding Corp. designs and develops application software. The Company offers data processing, management, and backup, as well as server automation, remote monitoring, and other related services. Datto Holding serves customers in the United States.

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Datto Holding (MSP US)

What Happened to MSP Recovery’s $33 Billion Deal?

Last year, markets were taken aback when medicare litigation firm MSP recovery announced that it was going public through a $32.6 billion SPAC merger.

subSPAC

Continued Absence Of Breakdowns Is A Positive Sign; Many Bottoms-Up Stock Recommendations

As long as the Russell 2000 index (IWM) is above $208, the Russell Micro Caps index (IWC) is above $134-$135, and the S&P 500 is above 4495, we...

Vermilion Research

Datto Holding IPO. Largest MSP Technology Unicorn With A Clear Path To Profitability

Datto Holding IPO is one of the promising deals focused on the MSP market, which accounts for 11% of global SMB IT spend. Tech unicorn helps to...

Andrei Zakharov

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