PayLink Direct and Olive.com, affiliated businesses engaged in payment services and online vehicle protection plans, announced a business combination with MDH Acquisition.
The deal values Olive.com at a pro forma enterprise value of approximately $960 million, which represents approximately 2.3x 2023 estimated revenue and 6.4x 2023 estimated Adjusted EBITDA.
A total of up to approximately $291 million in proceeds from MDH’s trust account, including a $15 million PIPE, will be used to pay down debt of PayLink Direct and Olive.com, redeem preferred units, purchase common stock of the new public company, pay transaction expenses and to capitalize the new public company’s balance sheet.
Existing shareholders of PayLink Direct and Olive.com are expected to own approximately 74% of the equity of the new combined company. Read more.
