CORRECTED-UPDATE 1-Germany's 468 SPAC to acquire children's entertainment firm Boxine

(Removes erroneous reference in paragraph 6)

FRANKFURT, June 17 (Reuters) - German blank check firm 468 SPAC said on Thursday it had entered exclusive negotiations to buy children’s entertainment firm Boxine for about 1 billion euros ($1.2 billion).

The price is based on a post-money valuation, or the value after new capital injections from investors.

468 SPAC, which was set up by German tech entrepreneurs, has signed a letter of intent that includes raising 100 million euros through private investment in public equity (PIPE) for Boxine, it said.

Boxine is a children’s digital media and entertainment business and features an award-winning, screen-free audio entertainment system for ages three years and older.

468 SPAC was founded by entrepreneurs with ties to Berlin startups incubator Rocket Internet, which produced some of Germany’s leading listed tech firms such as Delivery Hero , Zalando and Hellofresh.

468 SPAC’s co-founder Ludwig Ensthaler previously worked at seed investor Global Founders Capital.

Together with Florian Leibert, a U.S.-based software entrepreneur, the partners launched 468 Capital in 2020. The fund manages $200 million and has made 28 early-stage investments, according to Pitchbook.

They launched 468 SPAC 1 SE, the special-purpose acquisition company, or SPAC, that they are sponsoring, in April and raised 300 million euros.

SPACs are shell companies that raise funds in an initial public offering with the aim of merging with a private company, which becomes public as a result, providing an alternative to traditional IPOs.

468 SPAC’s merger with a target company is the third such deal in Germany after German air shuttle startup Lilium’s deal with Qell in March and Signa Sports United merger with Yucaipa last week. ($1 = 0.8378 euros) (Reporting by Arno Schuetze; Editing by Christoph Steitz and Edmund Blair)