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
At the SPAC of Dawn Happy Friday! SPACInsider has unveiled new presets on SPAC Performance accessible via the Data drop-down to easily sort for the highest and lowest performing active SPACs and de-SPACs. On the de-SPAC side, Vertiv (NYSE:VRT) continues to be well ahead of the pack, logging a 710% return by share price adjusted...
AGBA (NASDAQ:AGBA) stock is up over +90% this morning following a +211% premarket spike on news it has signed a definitive agreement to combine with social streaming video platform Triller. AGBA, the company itself, was formed by the $555 million combination between a SPAC of the same name and TAG Companies, a financial services firm...
At the SPAC of Dawn Since closing its combination with DHC last month, AI customer engagement firm BEN (NASDAQ:BNAI) has rolled out new partnerships with call center and healthcare clients. And, while it faces a fair bit of competition in the chatbot realm, several high-profile institutions have demonstrated that creating one that provides useful services...
Blue Ocean (NASDAQ:BOCN) provided significantly more texture today in the presentation for its $275 million combination with Asian digital media group TNL Mediagene, which it expects to hit profitability in the second half of the year despite a slight shakeup in financing for the transaction. The first big update in the first investor deck is...
At the SPAC of Dawn A brand new market may have just opened up for space de-SPACs as NASA administrator Bill Nelson announced a shift in the agency’s $11 billion program for a mission to return samples from Mars. Rather than rely on the agency’s internal technologies that would be predicted to get a sample...