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Alliance Entertainment Will become a listed company, listed on the NASDAQ capital market, complete its merge Friday (February 10) with blank check company Adara Acquisition.
Chairman Bruce Ogilvie and Chief Executive Officer Jeff Walker will continue to lead the combined entity after the merger, the U.S.-based distributor and wholesaler of music, movies, video games, electronics, arcades and collectibles said.
The merger values ​​Alliance at $480 million.
Adara shares, which are listed on the New York Stock Exchange as ADRA, have been delisted following the SPAC merger, and Alliance will now seek to list on Nasdaq “as soon as possible”, subject to meeting certain conditions for an initial public offering.
Following the merger, Alliance said it would invest further to automate its facilities and upgrade proprietary software to expand the company’s market share.
The two companies disclosed the terms of the merger back in June 2022, with Alliance owners owning 78% of the combined company and Adara shareholders holding the remaining 22%.
Following the merger, Alliance expects to receive proceeds of $115 million from cash held in the Trust, excluding any deferred underwriting commissions, transaction costs and redemptions by Adara’s public shareholders exercising such rights.
Alliance, which claims to have more than 485,000 entertainment titles from music companies, including warner music, sony music and universal music. It also handles products from entertainment companies including Disney, Warner Home Video, Universal Video, sony Pictures, Fox, Lionsgate, Paramount, Mattel, Lego, Hasbro and Arcade1Up and Funko, and software companies including Microsoft, Nintendo, Activision, Electronic Arts and Sega.
Alliance was founded in 1990 and was acquired by Ogilvy & Walker in 2013.
Ogilvie expects the merger with Adara and the impending listing of Alliance to drive inorganic growth through an aggregated strategy of acquiring and integrating competitors and complementary businesses.
“We expect to grow by strengthening our DTC relationships, adding to existing revenue lines and increasing capabilities, resulting in a more attractive overall service offering.”
Bruce Ogilvie, Alliance Entertainment
“Combined with further investments, including automated facilities and upgraded proprietary software, we are confident we can increase revenue and expand margins. In our next phase of development, we hope to see the addition of existing revenue line and improved capabilities, resulting in a more attractive overall service offering,” the chairman said.
“We will also continue to expand into new consumer product categories, increasing our product offering and offering more products to our existing customer base, while attracting new customers in the process. The Alliance Entertainment Board of Directors would like to thank the Adara team and its investors The team successfully completed the business combination,” added Ogilvie.
Walker said the merger — combined with the company’s strong revenue growth, expanding customer base and product offering, and several successful acquisitions — will help accelerate Alliance’s future expansion plans.
“Today, Alliance Entertainment is well-positioned to continue to capitalize on the shift to e-commerce and omni-channel strategies, especially as retailers and manufacturers greatly increase their reliance on their DTC (direct-to-consumer) fulfillment and distribution partners. situation,” Walker said.
“We are at an inflection point where we can now execute a multi-pronged growth strategy that we expect to deliver double-digit revenue growth and generate strong cash income.”
Jeff Walker, Alliance Entertainment
“We are at an inflection point where we can now execute a multi-pronged growth strategy that we expect will deliver double-digit revenue growth and generate strong cash,” the executive continued.
Commenting on the deal, Tom Finke, CEO and Chairman of Adara Acquisition, said: “We congratulate Alliance Entertainment on their achievement today and look forward to their continued growth as the entertainment industry’s leading DTC and e-commerce provider.”
“As one of the world’s largest distributors of brick-and-mortar media and entertainment products, we believe Alliance Entertainment will provide shareholders with diversified investment options. We believe their ability to expand the use of automation to further impact efficiencies, costs and future growth will bring Long-term value. We look forward to working with Alliance Entertainment as they strategically position the company to achieve its growth goals.”
The merger of Adara and Alliance marks the music industry’s latest SPAC combination. last year, spotify musicrival of france Dieter merge Partner with a blank check company to become listed on Euronext Paris.
However, not all proposed SPAC mergers have proven successful.
in december, free media buyout company, roll out Media giant Liberty Media two years ago, relax its business as it has been unable to merge with any potential targets despite evaluating “more than 140” target companies.
Global Music Business
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