In the era of ESG-conscious investing (ESG stands for Environmental, Social, & Governance), we have quite the story for you. Securus Technologies, a company which operates prison phones, is in talks to go public via SPAC.
Yeah, what the… Securus Technologies could go public in a merger with Atlantic Avenue Acquisition Corp, a SPAC. The deal is controversial because Securus Technologies is a private company which profits from charging the families of incarcerated people for phone calls.
SPACs are somewhat known for challenging the ESG mission. According to Bernstein analysts, SPACs are “one of the most anti-ESG assets imaginable.” This is because SPACs acquire investors before acquiring or merging with actual companies.
Tom Gores’s Platinum Equity is a current investor in Securus Technologies. Platinum Equity is looking for ways to take Securus public — this will likely attract negative attention from social justice activists who demand the divestment of private avenues for mass incarceration.