Wag Labs, Inc. is in talks to go public through a merger with CHW Acquisition Corporation (NasdaqCM:CHWA), according to people with knowledge of the matter. The special purpose acquisition company is in discussions to raise funds for a private investment in public equity, or PIPE, to support the transaction with Wag. The combined entity is set to have an enterprise value of about $350 million, the people said, declining to be named discussing private information.

The transaction value is based on a multiple of projected revenue of about $42 million in 2022 and $71 million in 2023. Terms aren't finalized and it's possible talks could collapse.