Mobility app Martı to go public via merger

WASHINGTON/ISTANBUL

Galata Acquisition Corp., a special purpose acquisition company led by Callaway Capital, on Aug. 1 announced execution of a definitive business combination agreement with Martı Technologies Inc., Türkiye’s leading mobility app.

Upon closing of the transaction, which is expected in the fourth quarter of 2022, the company will be named Martı Technologies Inc., and Martı’s ordinary shares will trade on the New York Stock Exchange under the ticker symbol “MRT.”

The combined company, which will be led by Alper Öktem, founder and chief executive officer of Martı, will have an implied initial enterprise value of approximately $532 million and expected to have an estimated $280 million in net cash proceeds after closing, the statement added.

“The transaction represents attractive entry valuation at 4.2x estimated 2023 fully deployed net revenue of $125 million and 9.7x estimated 2023 fully deployed EBITDA of $55 million.”

The transaction is subject to, among other things, completion of SEC review, approval of Galata shareholders, and regulatory approvals, the statement added.

“With our successful history, best-in-class unit economics, and vertically integrated business model driving costs lower and revenues higher, we are confident we can provide shareholders with a compelling investment alternative that supports today’s need for mobility solutions,” said Öktem.

Founded in 2018, Martı is backed by a diverse investor base with deep knowledge of the mobility sector in emerging markets and operates a fleet of over 46,000 e-mopeds, e-bikes, and e-scooters, serviced by proprietary software systems and IoT infrastructure.

With over 3.5 million unique riders consisting mostly of daily commuters, Martı experiences strong customer retention which is expected to be further enhanced as Martı continues to scale, the statement added.