Walkers Acts as Cayman Islands Counsel to Ace Convergence Acquisition Corp. in Business Combination with Achronix Semiconductor Corporation

Walkers were pleased to act as Cayman Islands counsel to Ace Convergence Acquisition Corp. (Nasdaq: ACEV) ("Ace Acquisition") in connection with its agreement to enter into a business combination with Achronix Semiconductor Corporation, a high-end FPGA semiconductor company. Walkers also assisted on the establishment and IPO of Ace Acquisition in 2020.

The business combination transaction, which is subject to shareholder approval, represents another example of an established business seeking to go public by combining with a special purpose acquisition company (SPAC) whose shares are already publicly traded. In addition to capital available from its IPO (which may be reduced by redemptions), Ace Acquisition is planning to raise additional capital by way of a Private Investment in Public Equity (PIPE) to fund part of the transaction.

According to a release on Businesswire: "The transaction reflects an implied equity value of the combined company of $2.1 billion, based on current assumptions, with a $10.00 per share PIPE financing subscription price. Upon closing, the combined company will receive up to $330 million in cash, comprised of $150 million in gross proceeds from a concurrent PIPE financing and up to $230 million in cash held in trust by ACE, assuming no redemptions by ACE shareholders, less $50 million paid to Achronix’s existing shareholders."

Acting with US legal advisors Skadden, Arps, Slate, Meagher & Flom, LLP, the Walkers team was led by Cayman Islands-based partner Jason Allison and associate Tom Hagger.

Jason AllisonPartnerT +1 345 914 6358jason.allison@walkersglobal.com

Tom HaggerSenior AssociateT +971 4 363 7950tom.hagger@walkersglobal.com

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