The deal will see Banijay chairman Stephane Courbit take the company, as well as online sports gambling group Betclic, public through FL Entertainment. The deal is being backed by investors including Bernard Arnault and Vincent Bolloré.
FL Entertainment Group will have an enterprise value of €7.2B ($7.6B), or €4.1B in equity value. The shares will begin trading on Euronext in Amsterdam on July 1.
The company said that FL Entertainment has a “compelling opportunity” as a public company through “both expected growth and the extensive consolidation opportunities for its two businesses.”
FL Entertainment will merge with SPAC Pegasus Entrepreneurs, which is backed by European asset management company Tikehau Capital and investment firm Financière Agache. Existing shareholders including Vivendi have agreed to reinvest in the new company.
Courbit called the move a “milestone” for the group. “As a result of the transaction, the group will benefit from a robust balance sheet and will be very well positioned to capture growth in the entertainment industry,” he said.
Banijay owns over 120 production companies across 22 countries including Endemol Shine North America, which it inherited as part of a major merger with the Big Brother producer in 2020.