Easterly and Sirius to Combine in an All Stock Transaction for a Pro Forma Market Cap of $2.2 Billion
Easterly Acquisition Corp, a SPAC focused on the financial services sector, announced this morning it has entered into a definitive agreement and plan of merger with Sirius International Insurance Group, Ltd., a global multi-line insurance and reinsurance group. The all-stock transaction is expected to produce a pro forma equity value of $2.2 billion for the combined company.
Sirius Group provides multi-line insurance and reinsurance in over 140 countries with gross written premiums of $1.4 billion in 2017.
Easterly originally IPO’d back for $200 million back in July of 2015, so we’re coming up on three years now that it has been trying close on a combination. However, Easterly has still managed to hang on to $155 million cash in trust. No easy feat. Read below for the transaction details.
TRANSACTION DETAILS
CONSIDERATION
- Easterly’s common stock to be exchanged for Sirius Group’s common shares at a price of 1.05x Sirius Group’s pro forma diluted GAAP book value per share as of June 30, 2018.
- Current Easterly stockholders will own approximately 7% of the combined company immediately following the Merger
- Sirius also intends to execute a PIPE, but no details on size as of yet.
FOUNDERS SHARES
- The Easterly Sponsors will surrender for cancellation (and for no consideration) between 3,328,000 and 4,528,000 of Easterly’s Founders Shares. As a reminder, the Sponsors currently hold a total of 5,000,000 Founders Shares.
- The final amount to be surrendered for cancellation will be determined based on the amount of cash in the Trust Account post-redemptions and the amount raised in the PIPE of Sirius Common Shares.
SPONSOR PRIVATE PLACEMENT WARRANTS
- The Easterly Sponsors will also be surrendering for cancellation (and for no consideration) ALL 6,750,000 Private Placement Warrants that were purchased for $1.00 at the time of the IPO.
REDEMPTION PRICE
- Assuming that Easterly’s stockholders approve the extension period at the shareholder vote on June 28th, Sirius Group has agreed to lend to Easterly $0.03 per month through the extension period for each public share that is not redeemed.
- Easterly’s current pro rata per share of the Trust is estimated to be $10.31
- If the transaction does not close until November, this means the pro rata trust value could potentially be $10.46 at the time of the shareholder vote.
- The loan will be forgiven if the Merger does not close by November 30, 2018.
ADVISORS
- Sirius Group is being represented by Sidley Austin LLP
- Easterly is being represented by Hogan Lovells US LLP


Terms Tracker for the Week Ending June 27, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. June continued its late-month rally with another five SPAC IPOs pricing this week, bringing the monthly total to 10 and the 2025 year-to-date count to...
Blueport (NASDAQ:BPACU) has filed for a $69 million SPAC that would bring another first-time sponsor team to market. The new SPAC is offering investors a right to a 1/6 share in each unit and it will have 15 months to complete a business combination. It is underwritten by Alliance Global Partners and will not be...
At the SPAC of Dawn The markets appear to poised to continue a rosy week with futures in the green in anticipation of PCE inflation readings. Space is one of the sectors feeling the most love recently and launch services firm Rocket Lab (NASDAQ:RKLB) is keeping up the momentum, scheduling two launches within 48 hours...
FIGX Acquisition Corp. (NASDAQ:FIGXU) announced the pricing of its $131 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “FIGXU”, Friday, June 27, 2025. The new SPAC aims to seek out a financial services target with a particular focus on wealth and asset managers with the potential to...
Yorkville Acquisition Corp. (NASDAQ:YORKU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “YORKU”, Friday, June 27, 2025. The new SPAC plans to combine with a target company in the telecom, media or technology sectors. Yorkville Acquisition Corp.’s management team is led...