Sports E-Commerce Company SIGNA Sports United Going Public Via SPAC: What Investors Should Know

Sports E-Commerce Company SIGNA Sports United Going Public Via SPAC: What Investors Should Know

A leading e-commerce company in the sports sector announced it will go public, with a SPAC deal announced early Friday.

The SPAC Deal: SIGNA Sports United will go public via a merger with SPAC Yucaipa Acquisition Corporation (YAC). The deal values the company at an enterprise value of $3.2 billion.

The deal includes a fully committed upsized PIPE of $300 million. The PIPE is anchored by Ron Burkle from Yucaipa Acquisition Corp and several top-tier global institutional investors and sovereign wealth funds.

As part of the SPAC merger, SIGNA Sports will acquire WiggleCRC, the second-largest online bike retailer globally.

The deal is anticipated to close in the second half of 2021.

The combined company of SIGNA Sports and WiggleCRC will be one of the largest pure-play e-commerce companies in the sports sector in the world.

About SIGNA Sports: The company serves over 7 million active customers, has over 1,000 brand partners, 500+ connected retail stores, and a global user base of over 15 million combined.

“SSU is a global leader in the fastest-growing sports categories and is well-positioned for continued success as a public company,” Burkle said.

The company’s four online e-commerce categories are bike, tennis, outdoor, and team sports.

Growth Ahead: The funding from going public will help secure the acquisition of WiggleCRC and also expand SSU’s technology platform, according to the company.

SIGNA Sports sees going public as a step in gaining market share in Europe and accelerating plans for U.S. and international expansion. The company acquired Midwest Sports and has a pending acquisition for Tennis Express, which together are expected to help boost SSU’s market in the U.S.

“With its technology platform and a combination of scale, international growth, and profitability, we expect SSU to grow its leadership position and accelerate its global expansion,” Burkle said.

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