Sports eCommerce and tech platform SIGNA Sports United announced additional PIPE investments and a new redemption backstop agreement related to its proposed business combination agreement with Yucaipa Acquisition. The additional elements increase deal certainty and ensure the listing of the pro forma company, SIGNA said in a news release.
SIGNA has entered into an additional $70 million of subscription agreements for the financing of its PIPE with Tier 1 institutional investors and sovereign wealth funds as well as ultra-high net worth individuals. Following this additional investment, total expected PIPE proceeds will increase to $372 million.
SIGNA also signed a redemption offset agreement with Bridgepoint and SIGNA International Sports Holding GmbH, the company’s controlling shareholder and member of the SIGNA group, providing for up to $178 million of additional liquidity, if necessary, in the event of elevated redemptions by Yucaipa shareholders.
Announced in June, the deal has an implied enterprise value of approximately $3.2 billion. The merger includes the acquisition of the WiggleCRC Group, an online bike retailer owned by Bridgepoint.
The transaction is expected to deliver $645 million of gross proceeds through the contribution of up to $345 million of cash held in the SPAC’s trust (assuming no redemptions) and the PIPE. Read more.
