Sports Ventures Acquisition in a regulatory filing included an investor presentation highlighting its proposed merger with DNEG, a UK-based visual effects company.
As announced in January, the transaction implies an enterprise value of approximately $1.7 billion for the combined company, representing approximately 11.4x FY2023E (ending March 31, 2023) adjusted EBITDA. Current DNEG equity holders will retain approximately 71% ownership in DNEG and will, assuming no redemptions by Sports Ventures’ stockholders, roll 85% of their equity interests into the pro forma company.
Investors have committed to a $168 million PIPE, which is anchored by affiliates of Sports Ventures, Novator Capital Limited, affiliates of Fairfax Financial and Arbor Financial. Assuming no redemptions, approximately $230 million in cash currently held in Sports Ventures’ trust account, together with the approximately $168 million in PIPE investment proceeds (excluding transaction expenses) would be delivered to DNEG.
With more than 20 years of industry experience, DNEG has been awarded six out of the last 11 Academy Awards® for ‘Best Visual Effects,’ most recently the film Tenet. The company was also nominated this year for special effects Oscars for its work on Dune and the James Bond film, No Time to Die. Read more.
