The deal is expected to support SSU’s international expansion and investments in its technology platform

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The merged entity is expected to serve 7 million active customers. (Credit: SIGNA Sports United)

Sports e-commerce and tech platform SIGNA Sports United (SSU) has signed an agreement to combine with Yucaipa, a special purpose acquisition company, in a nearly $3.2bn deal to go public.

The deal also includes the acquisition of Bridgepoint-owned WiggleCRC, which is said to be the second-largest online bike retailer globally.

The merger is expected to support the international expansion of SSU and investments in its technology platform.

Upon completion of the deal, the combined entity will be one of the pure-play sports e-commerce and technology platform company.

The combined company will serve seven million active customers, more than 1,000 brand partners, over 500 connected retail stores, and more than 15 million sports community users globally.

It is expected to post a net revenue of approximately $1.6bn in the financial year ending in September 2021.

Yucaipa chairman and president Ron Burkle said: “SSU is a global leader in the fastest-growing sports categories and is well-positioned for continued success as a public company.

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

“We look forward to becoming shareholders and partnering closely with the talented SSU team on this exciting journey.”

The transaction is expected to result in gross proceeds of $645m through a cash contribution of up to $345m held in YAC’s trust account.

Besides, it consists of a fully committed upsized PIPE of approximately $300m. Ron Burkle, who is the chairman and president of Yucaipa is investing $50m in the PIPE.

Under the terms of the deal, the existing shareholders of SSU will roll 100% of their equity holdings into the new public company.

The deal is expected to be completed in the second half of 2021.

Recently, the Berlin-based SSU expanded its presence in the US through its entry into tennis with the acquisition of Midwest Sports and a pending transaction to acquire Tennis Express, a full-service tennis speciality retailer based in Houston.

The two acquisitions are expected to expand the reach of SSU’s platform for the benefit of brand partners and digital communities.