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Next generation weather forecaster Tomorrow.io going public

By Kevin Donovan

14:30, 7 December 2021

Weather.io app
Predictive weather app Weather.io merging with SPAC Pine Technology in $420m SPAC IPO – Photo: Weather.io

The Tomorrow Companies (Tomorrow.io) is being acquired by blank-cheque firm Pine Technology to go public in a $420m transaction valuing the predictive weather platform at $1.2bn (£907m).

The acquisition is funded by cash and includes $75m in private investment in public equity (PIPE) securities funded by Koch Strategic Platforms, National Grid Partners, JetBlue Technology Ventures, SoftBank’s SB Energy and Pine Technology.

Closing is scheduled for the first half of 2022. The combined entity will trade on the Nasdaq under the ticker “TMW”.

Pine Technology is an Aurora, Ohio-based special purpose acquisition company (SPAC) that went public on 18 February. Pine stock trades on the Nasdaq under the ticker “PTOC”.

Pine Technology stock opened up 1.13% to $9.88 per share after the opening bell after closing Monday’s session at $9.77.

“We are striving to become the SpaceX of weather.” ~ Tomorrow.io co-founder and CEO Shimon Elkabetz

Transaction details

PJT Partners is acting as financial advisor for Tomorrow.io, with Moelis & Co. acting as financial advisor to Pine Technology. JJT Partners and Moelis acted as joint placement agents for the PIPE securities.

Boston, Massachusetts-based Tomorrow.io will use the proceeds to bolster its weather forecasting products, including launching radar-equipped satellites.

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The company sees opportunity in weather security, citing $100bn in weather-related losses in 2020 and a weather and climate services market projected to be worth $190bn by 2030: “Tomorrow.io’s mission is to help countries and businesses prepare for the business impact of weather by automating decision-making and enabling climate adaptation at scale,” Tomorrow.io said in a prepared release.

The SpaceX of weather

“Looking ahead, our hypothesis as a business is that climate security is really becoming the new cyber security,” said Tomorrow.io’s CEO and Founder Shimon Elkabetz on a conference call announcing the acquisition. “We are striving to become the SpaceX of weather.”

“Just like every boardroom and CEO are highly concerned about their IT exposure, enterprises, organizations, municipalities, and agencies are also becoming very concerned about their climate exposure and searching for tools to mitigate their risk, especially with (environmental, social and governance) regulation defining the next wave of corporate innovation,” Elkabetz added.

“We cannot build a wall around Miami in an afternoon, but in an afternoon, we can deploy a software solution that will help us manage risk for the entire Miami region.”

Tomorrow.io’s existing client base includes Delta Air Lines, Ford Motor, JetBlue Airways, National Grid, Uber and the US Air Force.

Read more: Starry to go public in Read more: Starry to go public in $1.66bn SPAC.66bn SPAC

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