(CelebrityAccess) — French music streaming service Deezer announced plans to take the company public on the Euronext Paris exchange via a Special Purpose Acquisition Company (SPAC) 12PO.
The proposed transaction values Deezer at approximately €1.075 million, the company revealed.
The SPAC, led by Iris Knobloch with Groupe Artémis and Combat Holding, is intended to help Deezer continue its growth in large streaming markets through its partnership-first strategy and focusing on product innovation and brand differentiation, as well as a focus on music, the company said.
“With its well-established brand, first-class management team and scalable platform, Deezer is poised to continue to capture a significant share in the booming music streaming growth. This is a perfect match and a transformational deal that will deliver long-term value creation for our shareholders as Deezer is a unique asset with considerable strategic avenues for future growth. With Deezer’s hybrid B2B/B2C strategy to enter key international markets, its highly competitive technology and focus on ESG, we are confident that the company is well-positioned to disrupt and consolidate while providing a high-quality music streaming service to millions of users around the world,” Iris Knobloch, Chairwoman of the Board of Directors and Chief Executive Officer of the SPAC.
“Today marks an important milestone in Deezer’s history as we embark on a journey to become a publicly traded company on Euronext Paris. I am thrilled to partner with I2PO who will provide us with the expertise, the global network and the capital we need to execute our strategic plan. We are uniquely positioned on the growing music streaming industry, with a very competitive product, a clear strategy and an experienced and renewed management team to seize this opportunity and create substantial shareholder value,” added Jeronimo Folgueira, Chief Executive Officer of Deezer.
The deal still faces regulatory scrutiny and is using the controversial SPAC strategy to go public through a so-called reverse merger, allowing them to avoid some of the disclosure requirements of a traditional initial public offering. The use of SPACs for IPOs has been criticized by economic experts as providing insiders with large payouts but often generating little return for retail investors.
In the United States, financial regulators recently proposed new rules that would require additional disclosures for companies going public through reverse mergers with SPACs and a deal last year to take UMG public through such a reverse merger fell apart, requiring the label giant to pursue a more traditional IPO.