Rubicon merges with Founder SPAC

Rubicon, a waste and recycling solutions company based in Lexington, Kentucky, plans to merge with Founder SPAC, a Houston-based special purpose acquisition company. The combined company will be named Rubicon Technologies and be traded publicly on the New York Stock Exchange. 

The company says it will continue to operate in Lexington. Nate Morris, founder and CEO of Rubicon, will continue to lead the company. 

“While the waste and recycling category is highly resilient, it is ripe for improvements in efficiency and sustainability,” Morris says. “The successful execution of our growth strategy will help propel the industry into the current age of digitization while facilitating the broader sustainability goals of customers and communities around the world. In doing so, we are creating a new standard for the waste and recycling category.”

According to a news release from Rubicon, the business combination values it at an implied $1.7 billion pro forma enterprise value, for $10 per share, assuming no redemptions by Founder SPAC shareholders. The merger is expected to be complete in the second quarter of 2022.

Rubicon expects to reach $577 million in revenue and $45 million in net revenue for 2021. For 2022, the company expects to reach $736 million in revenue and $77 million in net revenue, according to an investor presentation given earlier this month. The company projects overall revenue could reach $1.5 billion by the end of 2024.