- Enjoy Technology Inc., a startup which operates white-check stores to sell and help users to develop technology products, went public through a merger with cashback company MarqueeMarquee RaineMarquee Raine Acquisition Corp.
The merger with the private company, or SPAC, will give Enjoy an enterprise value of $1.2 billion and $450 million in capital increase, with $80 million of that coming from special investors. Marquee, started by former AppleApple Inc. executive Ron Johnson, announced the deal with Marquee on Wednesday, confirming an earlier Bloomberg News report on the talks.
Enjoy said it is aiming to complete the deal in the third quarter with shares of the combined company traded on Nasdaq under the ENJY symbol.
Enjoy operates in more than 85 cities in the United Kingdom and the U.K. delivering products for several wireless companies and Apple products in some cities. It has partnerships with carriers AT&T Inc. BT Group Plc and Rogers Communications Inc. and what it says is proprietary technology that powers its commerce and distribution system.
Johnson, known as the co-creator of AppleApple Inc.Apple Inc. s retail division, founded Enjoy in 2014. In 2011 John followed the CEO of Apple to become J.C. Penney Co. after almost 12 years.
"We have near-term, clear sight to profitability, and if I didn't feel confident on our path to profitability, I wouldn't go public now," Johnson said in an interview. We have great confidence in our ability to forecast the business today so that we can be a public company.
He added that he appreciated the accountability of being a public firm.
Johnson said that the investment raised by the merger will strengthen the company's balance sheets so it can offer greater volumes of new products from its partners. He added that he would eventually expand the company to include new partners and locations.
The company said it would target $1 billion in annual revenue by 2025. Its valuation in the MCC Marquee RaineMarqueeMarquee Raine deal is almost five times its projected fiscal 2022 revenue of $245 million. The company projections $150 million of revenue for fiscal 2021, and profitability by fiscal 2023, Johnson said.
Raine Group, backed by MarqueeMarquee Raine, raised about $374 million in a December public offering. The SPAC is run by co-chairmen Brett Varsov, owner of Chicago Cubs baseball team, and Raine Group partner Tom Ricketts.