Today, sports fans have another name to add to their radar. Signa Sports United (NYSE:SSU) will be making its debut on the New York Stock Exchange after entering into a business combination with special purchase acquisition company (SPAC) Yucaipa Acquisition Corporation. Shareholders of Yucaipa Acquisition approved the business combination on Dec. 13, and today will see SSU stock hit the market.
Signa Sports operates as a “group of specialist sports webshops powered by our leading sports commerce and technology platform.” As part of its strategy, Signa Sports focuses on acquiring popular regional e-commerce stores to accelerate growth and create a smooth shopping experience. The company’s strategy has allowed them to showcase over 1,000 brand partners, such as Bikester, Tennis Point and recently acquired Wiggle.
Signa Sports CEO Stephan Zoll has high hopes for his company, adding that:
“This transaction is a milestone event for SIGNA Sports United, providing capital to bolster our position in the rapidly growing sports e-commerce & technology space and continue our expansion in Europe as well as into the United States. SSU is committed to a strategy of long-term value creation, and we are pleased to begin our journey as a public company to unlock the full potential of our platform and infrastructure.”
So, what else is there to know about SSU stock? Let’s dive right in.
What to Know as SSU Stock Makes Its Debut
- Signa Sports boasts more than 100 webshops across 20 countries and 7 million active customers. Additionally, the company has more than 500 million annual online visitors.
- The company will receive gross proceeds of at least $484 million. Signa Sports plans on using this money to fund future growth and acquisitions.
- Key attributes of SSU stock include a business model supported by long-term trends in the fragmented sports market, a track record of double-digit organic growth and a technology-driven e-commerce platform.
- Supply chain issues have hurt the company’s revenue targets for the current fiscal year. Signa Sports expects revenue of €1.40 billion-€1.55 billion for the year. However, the company expects to report strong growth after supply chain issues subside.
- Additionally, Signa Sports plans on growing its revenue by 25% annually and aims to triple its profit margins to 12%-15% in the long term.
- Earlier this year, the company acquired Wiggle. Wiggle is a bicycle store based in Britain that has annual sales of $500 million. The transaction will create the world’s largest online bike platform.
- Citi (NYSE:C) will act as the lead financial advisor for Signa Sports.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.