Entertainment Alliance is set to become a public company, listed on Nasdaq Capital Market, upon completion merger with the drum testing company, Adara Acquisition, on Friday (February 10).
President Bruce Ogilvie and CEO Jeff Walker said the US-based distributor and wholesaler of music, movies, video games, electronics, video games and collectibles will continue to lead the combined unit after the merger.
The merger has a Union value of $480 million.
Adara’s stock, listed as ADRA on the New York Stock Exchange, was delisted following the SPAC merger, and Alliance will now seek to list on Nasdaq “as soon as possible,” subject to several certain conditions for the initial public offering.
Following the combination, Alliance said it will invest more to automate its facilities and upgrade proprietary software to expand the company’s market share.
The companies disclosed the terms of the merger in June 2022, with Alliance owners going to own 78% of the post-merger company, while Adara shareholders will hold. keep the remaining 22%.
Alliance expects to receive $115 million in cash proceeds from the merger trust, excluding any deferred underwriting commissions, transaction costs, and acquisitions. of Adara’s public shareholders to exercise those rights.
Alliance, claims to have over 485,000 entertainment products from music companies including Warner music, Music Sony And Popular music. It also handles productions for entertainment companies including Disney, Warner Home Video, Universal Video, sony Pictures, Fox, Lionsgate, Paramount, Mattel, Lego, Hasbro and Arcade1Up, and Funko, as well as software companies including Microsoft, Nintendo, Activision, Electronic Arts and Sega.
Founded in 1990, Alliance was acquired by Ogilvie and Walker in 2013.
Ogilvie expects the merger with Adara and Alliance’s upcoming listings to drive inorganic growth through an integrated strategy of purchasing and integrating competitors and complementary businesses.
“We expect to see growth from strengthening our DTC relationships to growing existing revenue streams and improving capabilities that will create a more compelling offering overall.”
Bruce Ogilvie, Entertainment Alliance
“Combined with additional investment including facility automation and proprietary software upgrades, we are confident we can increase revenue and expand margins. In this next phase of growth, we expect to see growth from strengthening our DTC relationships to growing existing revenue streams and improving capabilities that will create a new service. The overall service is more attractive,” said the president.
“We will also continue to expand into new consumer product segments, growing our product offering and offering more to our existing customer base while attracting new customers along the way. This. The Alliance Entertainment board of directors would like to thank the team at Adara and their group of investors for the successful completion of the business combination,” added Ogilvie.
Walker said the merger — combined with the company’s strong revenue growth, expanded customer base and product offering, and a number of successful acquisitions — will help propel the initiatives. Alliance’s future expansion.
“Alliance Entertainment is today well-positioned to continue to capitalize on changes to its eCommerce and Omnichannel strategy, especially with retailers and manufacturers increasingly dependent on partners. distribute and execute their DTC (Direct to Consumer),” said Walker.
“We are at an inflection point that now enables us to execute on a multi-pronged growth strategy that we expect will deliver double-digit revenue growth with strong cash generation to profitability.” profit.”
Jeff Walker, Entertainment Alliance
The CEO continued: “We are at an inflection point that now enables us to execute on a multi-pronged growth strategy that we expect will deliver double-digit revenue growth with the ability to generate strong cash out.
Commenting on the deal, Adara Acquisition CEO and President Tom Finke said: “We congratulate Alliance Entertainment on today’s achievement and look forward to their continued growth as a supplier. DTC and e-commerce leading for the entertainment industry.”
“We are confident that Alliance Entertainment will provide shareholders with a diversified investment option as one of the largest physical media and entertainment product distributors in the world. We believe their expanding use of automation technology to have more impact on efficiency, costs and future growth will provide lasting value. We look forward to partnering with Alliance Entertainment as they strategically position the company to achieve its growth goals.”
The merger between Adara and Alliance marks the latest SPAC collaboration in the music industry. Last year, SpotifyFrance-based competitor Deezer merger with a white check company to become a publicly listed company on Euronext Paris.
However, not all proposed SPAC mergers have proven successful.
In December, free media Acquisition Corporation, show by media giant Liberty Media two years ago, relax its business as it failed to merge with any potential target despite assessing “more than 140” target companies.
Global Music Business
