Apple Retail Pioneer Ron Johnson Lands SPAC Deal For Enjoy Technology: What Investors Should Know

A leading telecommunications retail partner for large companies is going public with plans to bring the experience to customer's homes.

The SPAC Deal:  is merging with Marquee Raine Acquisition Corp MRAC 0.3% in a deal valuing the company at $1.2 billion.

The deal will provide Enjoy with around $450 million in growth capital.

Current Marquee Raine Acquisition shareholders will own 23% of the company if the merger is approved.

About Enjoy: With strong exclusive relationships with leading consumer brands, Enjoy is a partner for retail efforts.

The company's partners include  T 0.75% in the U.S., BT Group in the U.K., Rogers Communications RCI 0.49% in Canada and Apple  AAPL 0.6% in select U.S. cities. The relationships are mentioned as being multiyear deals by the company.

“Enjoy's mobile stores enable consumer brands to deepen engagement with their customers and provide customers with a convenient, full service experience that cannot deliver,” the company said.

Enjoy is led by founder Ron Johnson , who previously led Apple's retail stores and also held roles with JCPenney and  Corp TGT 0.24%.

“Mr. Johnson's track record of seeing around corners in retail includes the development of Apple's retail stores and the transformation of Target into a retailer that made great design affordable.”

The company had 463 stores in fiscal 2020, representing 50% coverage of the U.S. population.

Growth Ahead: Enjoy is seeking to reinvent commerce at home, using its first-mover advantage in a large addressable market to transform the commerce-at-home market.

The at-home experience is powered by proprietary technology that includes real-time inventory management tools.

Growth is also expected to come from new customers, new products and new partners. New categories mentioned in the presentation include personal luxury goods, high fashion, beauty, fitness and automotive.

One area for growth is international expansion. The company plans to add stores in Germany, France, Japan, Spain, Italy and Australia.

Financials: Enjoy had compounded annual revenue growth of 100% from 2018 to 2020. Fiscal 2020 revenue was $60 million.

The company expects to have 78% compounded annual growth from 2020 to 2025. Revenue is expected to hit $1 billion and a 30% adjusted EBITDA margin in fiscal 2025.

Price Action: Shares of Marquee Raine Acquisition Corp. closed at $9.89 Wednesday, down slightly for the trading day.

Source: Benzinga – Apple Retail Pioneer Ron Johnson Lands SPAC Deal For Enjoy Technology: What Investors Should Know