March 7 (Reuters) - Weather and climate security platform Tomorrow.io and special purpose acquisition company Pine Technology Acquisition Corp (PTOC.O) have terminated their $1.2 billion merger agreement due to market conditions, the companies said on Monday.
The deal, announced in December, is the latest casualty in the SPAC market, which has seen a number of companies ending their proposed mergers as global markets are roiled by geopolitical tensions and interest rate hike fears. read more
The blank-check market and companies that went public through this route have also come under pressure due to souring investor sentiment.
Many companies that merged with SPACs have failed to meet the lofty targets they had set, with highfliers like WeWork Inc (WE.N) and Grab Holdings Ltd losing 45% and 53% of their market capitalization so far this year.
Formerly known as ClimaCell, Tomorrow.io is used by customers including JetBlue Airways Corp and Uber Technologies Inc (UBER.N) to predict the impact of weather events.
Pine Technology SPAC completed its $345 million IPO in March last year. It will continue to seek a target, it said.
SPACs, which are listed pools of capital with no business operations except hunting for a private company to merge with, typically have two years from their listing to clinch a deal.
Our Standards: The Thomson Reuters Trust Principles.