Three Firms Lead $1.25 Billion SPAC For AMD-Backed Web3 Company

Skadden, Arps is advising W3BCLOUD Holdings Inc., a Scottsdale, Arizona-based provider of computing storage and infrastructure for third-generation web technology, on its go-public merger with a special purpose acquisition company.

Ropes & Gray advised the SPAC, Social Leverage Acquisition Corp I, which is sponsored by venture capital firm Social Leverage and also has backing from semiconductor company Advanced Micro Devices, Inc. and other firms.

After the transaction’s expected fourth-quarter close, the combined company will be named W3BCLOUD, Inc. and its shares are expected to be traded on a national exchange. The transaction values the company at $1.25 billion, according to a statement.

Founded in 2018, W3BCLOUD says it’s focused on serving Web3 developers and content creators in Web3’s decentralized economy, based on blockchain technology. It says it expects to benefit from Web3 uses like gaming, nonfungible tokens, the Metaverse, and decentralized finance.

The company will receive up to $345 million in proceeds from the SPAC’s trust account. It has also received commitments for $40 million from ConsenSys, SK Inc. and other investors, and it has an agreement to get a $10 million equity investment from AMD, the statement said.

Latham & Watkins said its team advising Barclays and B. Riley Securities--the joint placement agents to Social Leverage Acquisition Corp I—was led by partners Stelios Saffos, Drew Capurro, and Scott Westhoff.

Skadden said its team includes M&A partners Blair Thetford and Joseph Coco and capital markets partner Michael Schwartz. Ropes said its team was led by private equity partner Carl Marcellino.