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Confirmed: Deezer, valued at $1.16 billion, goes public in France through merger with SPAC

It was rumored last week – now it’s a done deal.

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Streaming company Deezer has reached a definitive agreement to merge its business with I2PO, a Special Purpose Acquisition Company (SPAC) based in France.

As a result, Deezer is set to be publicly listed on Euronext Paris seven years after the last attempt at an IPO failed.

On a fully diluted basis, the I2PO merger gives Deezer a pre-cash equity valuation of €1.050 billion (US$1.13 billion at current exchange rates).

That valuation represents a company valuation of approximately €1.075 billion ($1.16 billion), I2PO confirmed today (April 18).

In that announcement, I2PO called Deezer “the second largest independent music streaming platform in the world” and confirmed that the service currently has 9.6 million subscribers worldwide.

I2PO’s announcement also confirmed that Deezer’s revenue of 400mn in 2021 is a clear path to operational profitability and cash flow positive.”

Upon completion of the merger, the combined company will benefit from cash currently held by I2PO in addition to cash raised through a PIPE (Private Investment in Public Equity).

This PIPE was subscribed to by most of Deezer’s existing shareholders, including Access Industries, Universal Music Group, Warner Music Group, Orange, Kingdom Holdings, Eurazeo and Xavier Niel, as well as a group of long-term French and international investors including Groupe Artémis, Bpifrance and media participations.

A total of €135 million ($145 million) has been secured through the PIPE (and a non-redemption obligation) to date.

According to I2PO, this amount “meets the minimum cash requirement [needed] to pursue the Group’s growth strategy, regardless of the final payback rate”.

I2PO will be rebranded to Deezer after the merger is complete.


Iris Knobloch, Chairman and Chief Executive Officer of I2PO, commented: “With its well-established brand, world-class management team and scalable platform, Deezer is poised to continue to capture a significant share of music streaming’s booming growth.

“This is a perfect match and a transformational deal that will deliver long-term value to our shareholders as Deezer is a unique asset with significant strategic opportunities for future growth.

“With Deezer’s hybrid B2B/B2C strategy to enter key international markets, its highly competitive technology and its focus on ESG, we are confident that the company is well positioned to revolutionize and consolidate while uniting millions of users to offer quality music streaming service around the world.”

“With Deezer’s hybrid B2B/B2C strategy to enter key international markets, its highly competitive technology and its focus on ESG, we are confident that the company is well positioned to revolutionize and consolidate while uniting millions of users to offer quality music streaming service around the world.”

Iris Knobloch, I2PO (soon to be renamed Deezer)

François-Henri Pinault, Co-Founder and Member of the Board of Directors of I2PO, stated: “We created the first European SPAC for entertainment and leisure with the ambition to take a European champion to new heights. With Deezer we have found the ideal combination. I2PO brings an extensive international network and a complementary set of skills to develop Deezer into the leading independent music streaming platform through strong positions in selected key markets. We are delighted to accompany one of the emblematic European technology leaders in its next chapter as a public company in Paris.”

Matthieu Pigasse, co-founder and board member of I2PO added: “Music is life. It is the only universal language. Where there are no words, music speaks. As a long-time investor in the media and entertainment world and a customer of Deezer, I know firsthand that Deezer is the home of music, with the best possible experience and unique potential. “The future is unwritten,” said Joe Strummer (The Clash). With Deezer, together we will write the future of music streaming, with a great team, fantastic technical skills, a differentiated business platform and the ability to scale.”

Guillaume d’Hauteville, Chief Executive Officer of Deezer, said: “Deezer has significantly accelerated its momentum in recent months and again achieved double-digit growth in February. With the upcoming launch of the RTL+ partnership in Germany and other developments, the future of Deezer is brighter than ever.

“We chose to go public via a merger with I2PO as this path allowed us to review our future business plans and opportunities with an excellent team, increase our financial base, preserve our strategic potential and provide liquidity to our current and future shareholders to provide.

“I would also like to thank all Deezer employees, its management team and the historical shareholders led by Access Industries for enabling the company to become what it is today and for continuing to do so with continued investments in the future.” have continued as part of this transaction. Furthermore, today’s transaction is another milestone for Access Industries as we aim to help our music and digital investments such as Deezer, Spotify, Beats, Warner Music or DAZN to name a few to grow and become references in their respective to become markets.”

Jeronimo Folgueira, Chief Executive Officer of Deezer, added: “Today marks an important milestone in Deezer’s history as we embark on our journey to becoming a publicly traded company on Euronext Paris. I am very excited to be partnering with I2PO, which will provide us with the expertise, global network and capital we need to execute our strategic plan.

“We are uniquely positioned in the growing music streaming industry with a very competitive product, a clear strategy and an experienced and renewed management team to capitalize on this opportunity and create significant shareholder value.”music business worldwide

https://www.musicbusinessworldwide.com/confirmed-deezer-going-public-at-1-16bn-valuation-via-merger-with-spac-in-france/ Confirmed: Deezer, valued at $1.16 billion, goes public in France through merger with SPAC

Fry Electronics Team

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