Michael Dell Forms New ‘Blank Check’ SPAC, Seeks $575M IPO

‘Our acquisition and value creation strategy is to identify, acquire and—after our initial business combination—serve as a trusted, long-term partner to accelerate a company’s growth in the public markets,’ states an SEC filing from newly formed MSD Acquisition Corp.


Dell Technologies Chairman and CEO Michael Dell is seeking to raise upward of $575 million for his newly formed “blank check” acquisition company through an initial public offering.

“MSD Acquisition Corp. is a newly organized blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities,” said the company in a filing with the U.S. Securities and Exchange Commission. “Our acquisition and value creation strategy is to identify, acquire and—after our initial business combination—serve as a trusted, long-term partner to accelerate a company’s growth in the public markets.”

The new special purpose acquisition company (SPAC) is aiming to sell 50 million investment units at $10 each, with each including one Class A share and 0.2 warrants to purchase a second one at $11.50 in the future, bringing the total IPO value to $575 million. MSD Acquisition will apply to have its units listed on the Nasdaq under the symbol MSDAU.

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[Related: Michael Dell Wants To Work With Intel CEO As AMD, Nvidia Make Server Inroads]

Michael Dell is serving as MSD Acquisition’s strategic adviser.

MSD Acquisition’s founding partners include executives from MSD Capital and MSD Partners, part of Michael Dell’s family office, and which combined manage over $19 billion and employ approximately 110 people. These executives include CEO Gregg Lemkau, who is CEO of MSD Partners and previously worked at Goldman Sachs; Chairman John Phelan, who co-founded MSD Capital; and CFO John Cardoso, who is chief investment officer of MSD Partners and MSD Capital.

“We believe the combination of our affiliation with MSD Partners, the experience and network of our Founders, management team and Strategic Advisor, and the access to our board members’ expertise will be attractive to potential target businesses and will enable us to identify and execute a successful business combination,” said MSD Acquisition in its SEC filing. “MSD Acquisition will benefit from MSD Partners’ extensive investment experience across asset classes through different economic cycles, its proprietary relationship network, and its reputation in the marketplace as a preferred partner.”

MSD Capital and MSD Partners already have agreed to buy up to 5 million investment units at $10 each once the SPAC close on its first merger deal.

In terms of MSD Acquisition’s relationship to Dell Technologies, the company said it will not invest in Dell Technologies’ principal markets.

In addition, the new SPAC does not plan to combine in any way with the $92 billion Round Rock, Texas-based infrastructure giant. “We do not intend to pursue an initial business combination with a company that is in a business directly related to any of the principal businesses in which Dell Technologies operates,” said the company in its SEC filing.

A “blank check” company raises funds for an IPO with the goal of buying a private business or multiple private businesses. The private entities then become public as a result of any acquisition or merger with MSD Acquisition. The new company said to date it has not selected any company to buy.

“We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target,” said the company.

Michael Dell is currently ranked No. 18 on Forbes’ list of the richest people in the world with a net worth of $43.3 billion.

Dell Technologies is set to report its fourth fiscal 2021 earnings on Feb. 25.