Seaport Global Acquisition Corp. Announces Business Combination with Apollo Portfolio Company Redbox
May 17, 2021
New York – Paul Hastings LLP, a leading global law firm, announced today that it advised Seaport Global Acquisition Corp. in its proposed business combination with Redbox in a transaction that values the combined company at $693 million. The transaction will result in Redbox becoming a publicly traded company.
The transaction will be funded by a combination of cash held in the trust account of Seaport Global Acquisition and a fully committed PIPE led by Ophir Asset Management. Strategic investors include global content leader Lionsgate (LGF.A, LGF.B), Legendary Entertainment, Screenvision, and Basil Iwanyk, producer of the John Wick series and founder of Thunder Road Films. As part of the transaction, all existing shareholders will roll 100% of their equity in Redbox, including funds managed by affiliates of Apollo Global Management, Inc., which acquired Redbox through the acquisition of Outerwall in September 2016.
Redbox, a leader in quality home entertainment for nearly two decades, has been undergoing a transformation to offer customers and partners a multi-product experience across physical and digital channels. Capital raised from the transaction will be used to pay down debt as well as invest in innovation and accelerate this transformation, which spans multiple entertainment windows and business models, including film distribution, transactional video on demand (TVOD), premium video on demand (PVOD), ad-supported linear and on demand (AVOD). Redbox is also building technology to offer subscription on demand (SVOD) services as a third-party retailer.
The Paul Hastings team that advised Seaport Global Acquisition was led by partners Frank Lopez and Carl Sanchez, and included of counsel James Shea, associates Joe Swanson, Elena Burns, Bill Milburn, M’Alyssa Mecenas, Laura Yip, John Gasparini, Lexi Howerton, Jonathan Cardenas, Taylor Montgomery, and Adam Winer. Other partner advisors included Joseph Opich, Todd Schneider, Doug Schaaf, and Steve Harris.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Redbox/Apollo Global Management, Inc. and Kirkland & Ellis LLP acted as legal advisor to the placement agents.
Closing of the transaction is expected to occur in the third quarter of 2021, subject to regulatory approvals and other customary closing conditions.
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