Switzerland-based technology and payments company Global Blue has secured a $225 million strategic growth equity investment from CK Opportunities Fund, an investment fund co-managed by Certares Opportunities, and Knighthead Opportunities Capital Management, according to a Friday (May 6) press release.
Global Blue is planning to use the fresh capital to continue its pursuit of add-on acquisitions in omnichannel retail tech. The money will also go toward working capital requirements associated with the company’s central tax-free shopping business following two years of stalled activity due to the pandemic, the release stated.
“This investment will enable Global Blue to take full advantage of the anticipated robust travel recovery while continuing to pursue our external and internal growth plans in payment and retail tech,” said Global Blue CEO Jacques Stern in the release.
The deal is subject to shareholder approval and is anticipated to close sometime next month, the release stated. Of the $225 million, $180 million is for Series B preferred shares and $45 million is for common shares. The new Series B preferred shares will be issued at a price of $8.50 per share, an estimated 62% premium over the closing price of $5.24 Thursday (May 5).
“The Series B preferred stock will carry a 5% annual pay-in-kind dividend rate and are convertible into approximately 21 million registered common shares on a one-for-one and basis,” according to the release. “The $45 million of common stock will be issued at [Thursday’s] closing price, translating to approximately 9 million shares.”
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Certares and its affiliates have a global knowledge of the travel and tourism industry and a portfolio of travel assets, along with domain expertise that could generate new opportunities for Global Blue, the release stated. Tom Klein, senior managing director of Certares, will join the board of Global Blue.
“Global Blue is a company benefiting from secular growth, particularly in the luxury retail market; cyclical recovery; and accelerating opportunities as omnichannel retailers increasingly adopt new solutions from strategic tech partners like Global Blue,” Klein said in the release.
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