PAE to merge with Gores Holdings

By Marjorie Censer / November 4, 2019 at 10:46 AM

PAE will merge with Gores Holdings III, a special-purpose acquisition company sponsored by an affiliate of the Gores Group, PAE announced earlier this month.

"Upon closing, this transaction will introduce PAE as a publicly listed company, with an anticipated initial enterprise value of approximately $1.55 billion," the company said. "Upon completion of the transaction . . . [private-equity firm] Platinum Equity and other minority owners of PAE are expected to hold approximately 28 percent of the newly public PAE, subject to various purchase price adjustments."

The deal has been approved by the boards of both Gores Holdings III and PAE and is expected to close early next year, PAE said. Once the deal closes, the name Gores Holdings III will be changed to PAE.