Blue Nile, Inc., the leading online diamond jewellery retailer based in the US, and Mudrick Capital Acquisition Corporation II, a publicly-traded special purpose acquisition company, entered into a definitive agreement for a business combination that will result in Blue Nile becoming a public company.
Upon closing of the transaction, the combined company will be named Blue Nile and is expected to be listed on NASDAQ. The post-combination company will be led by Sean Kell, Blue Nile’s Chief Executive Officer, and the current management team.
The pro forma implied equity value of the combined company is $873 million at the $10.15 per share PIPE price, assuming no redemptions by the public stockholders of Mudrick Capital Acquisition Corporation II. The transaction implies a pro forma enterprise value for Blue Nile of approximately $683 million.
“As the pioneer of and category leader in online fine jewellery, Blue Nile is well positioned to win as the go-to e-commerce destination in the space,” said Jason Mudrick, Founder and Chief Investment Officer of Mudrick Capital Management, L.P. “With its market leadership, track record as an innovator, talented team, and omnichannel business model, along with its proven growth vectors, Blue Nile fully addresses Mudrick Capital Acquisition Corporation II’s investment criteria. We are excited to partner with Blue Nile as it continues to be a trailblazer in the space.” Sean Kell said, “Over the past two and a half years we have successfully transformed and elevated Blue Nile as a thriving fine jewellery and lifestyle brand, and we are excited about the growth opportunities that lie ahead. We have only scratched the surface of an estimated $320 billion global fine jewellery market that has been slow to move online and remains fragmented. As we look to execute our growth strategy, now is the right time to become a public company.”