Agreement on the takeover of Deezer by I2PO, SPAC of Pinault and Pigasse | Photo credits: Deezer
PARIS, April 18 (Reuters) – I2PO, the investment vehicle created last year by François-Henri Pinault and Matthieu Pigasse, announced on Monday that it has reached a definitive agreement with Deezer to acquire the French music streaming group in line.
The agreement was concluded on the basis of an enterprise value of approximately 1.075 billion euros, the two companies specify in a press release.
The combination aims to grow Deezer’s revenue to €1 billion by 2025 while enabling it to achieve operating profitability and positive cash flow, they add.
Deezer, which claims 9.6 million subscribers, generated 400 million euros in turnover in 2021, an amount up 5.5%.
I2PO, a “special purpose acquisition company” or SPAC dedicated to the entertainment and leisure sector, has been listed on the Paris Stock Exchange since last July after raising 3,275 million euros.
The new entity resulting from the merger, which will retain the Deezer name, will have 135 million euros, part of which will be raised from investors that include existing Deezer shareholders (including Access Industries, UMG, Warner Music, Orange, Kingdom Holdings, Eurazeo and Xavier Niel) as well as Groupe Artémis, Bpifrance and Media Participations.
(Written by Marc Angrand)