What is a SPAC merger?

A SPAC (special purpose acquisition company) is a listed shell that raises cash first and finds a company to merge with later — taking that company public through the merger rather than an IPO. Sponsor shares and redemption rights complicate the economics.

SPAC mergers boomed in 2020–21 as a faster route with negotiable disclosure of projections, then collapsed in both volume and post-merger performance; the structure persists as a niche path.