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Signa Sports Buys Wiggle for SPAC Trading

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Reuters

Published



June 11, 2021

Online sporting goods retailer Signa Sports United has reportedly acquired Wiggle, a UK-based cycling and outdoor business.

Wiggle / Le Col

The deal was closed after Cigna, owned by Austrian investor René Benko, agreed to be listed on the New York Stock Exchange through a merger with a blank check company. The transaction brings Signa Sports United to $ 645 million in revenue, $ 345 million from special purpose acquisition company (SPAC) Yucaipa Acquisition, and private investment in public equity (PIPE) investors. Consists of $ 300 million from.

Signa, the world’s number one pureplay online sporting goods retailer, uses a portion of its revenue to buy Wiggle. Wiggle has annual sales of approximately $ 500 million. Cigna declined to comment, but Yucaipa couldn’t comment immediately.

With Wiggle’s deal, Signa Sports United will be about four times larger in the sub-sector than the runner-up Bike24, which is listed in Frankfurt.

Wiggle Owner, Private Equity Farm Bridge point, Will become an investor in Signa Sports United as part of the deal, sources added. Bridgepoint could not be commented immediately.

The SPAC list is estimated by Signa Sports United to be 1.6 times the $ 2 billion in revenue expected to be posted in fiscal year 2021/22, which ends in September.

Cigna considered listing on the stock market at a valuation of € 1 billion in 2018, but then chose to raise funds and attracted Asian retailers. ion Co Ltd and Central Group, as well as the German insurer R + V, will continue to be shareholders after listing.

SPAC will raise funds through an initial public offering aimed at acquiring a private company, which will automatically be listed on the stock market.

Signa Sports United runs companies such as the online bicycle shop Fahrrad.de and Bikester, and the tennis platforms Tennis-Point and Tennis. Express, Campz and team sports shop outdoor equipment retailers such as Outfitter and Stylefile.

The company operates more than 80 web shops in 17 countries and reaches more than 7 million online customers annually. The group expects adjusted core profit of $ 70 million, compared to approximately $ 1.6 billion in revenue from the current fiscal year to September, including the latest acquisition.

Signa Sports United plans to continue to grow revenues by more than 25% annually, triple profit margins to 12% to 15% in the long run, scale impact, pricing technology, and third-party technology offerings. We are aiming to expand. Party vendor.
After the contract with Yucaipa, real estate investor René Benko’s Signa Holding will own approximately 50% of Signa Sports United.

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Signa Sports Buys Wiggle for SPAC Trading

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