SPAC Deal for Carlyle-Backed Syniverse Nixed on Redemptions (1)

Syniverse Technologies LLC and M3-Brigade Acquisition II Corp. called off their $2.85 billion merger as investors opted to return their shares for cash, making the deal the latest casualty of record redemption rates.

The blank-check company said in a statement Wednesday that the number of shareholders redeeming their stock for cash would’ve exceeded the minimum amount of capital needed for closing the deal. M3-Brigade will now seek a different target to take public while Syniverse remains closely held.

The special-purpose acquisition company and the Carlyle Group Inc.-backed mobile services business had struck the deal to merge in August. The ...