Business
DBGI Finalizes New Agreement for $20M revenue Sundry Acquisition Scheduled to Close in November
AUSTIN, Texas, Oct. 13, 2022 /PRNewswire/ -- Digital Brands Group, Inc. ("we", "us", "DBG"or the "Company") (NASDAQ: DBGI), a curated collection of luxury
About this update from Digital Brands Group, Inc.
[{"type":"text","content":"AUSTIN, Texas, Oct. 13, 2022 /PRNewswire/ -- Digital Brands Group, Inc. (\"we\", \"us\", \"DBG\"or the \"Company\") (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today announces that the Company and Sunnyside, LLC (\"Sundry\") revised their previously disclosed definitive acquisition agreement to require less cash and equity to close the transaction. The Company believes the transaction should close in November.\nSundry Acquisition Highlights:\nSundry generated $22.8 million in revenue in 2021; andThe acquisition is expected to be accretive to EBITDA immediately upon completion.\"We are excited about the significant revenue scale and positive cash flow that we will achieve between combining with the Sundry's acquisition,\" said Hil Davis, Chief Executive Officer of DBG. \nUnder the terms of the revised agreement, holders of Sundry membership interests will exchange all such interests for (i) $7.5 million in cash, (ii) $1.0 million in equity valued at the Issuance Price, and (iii) $5.5 million in debt to the sellers. Please refer to the Company's Current Report on Form 8-K as filed with the Securities and Exchange Commission to review the details and specifics of the acquisition agreement.\nAbout Digital Brands Group We offer a wide variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis. We have created a business model derived from our founding as a digitally native-first vertical brand. Digital native first brands are brands founded as e-commerce driven businesses, where online sales constitute a meaningful percentage of net sales, although they often subsequently also expand into wholesale or direct retail channels., Unlike typical e-commerce brands, as a digitally native vertical brand we control our own distribution, sourcing products directly from our third-party manufacturers and selling directly to the end consumer. We focus on owning the customer's \"closet share\" by leveraging their data and purchase history to create personalized targeted content and looks for that specific customer cohort. We have strategically expanded into an omnichannel brand offering these styles and content not only on-line but at selected wholesale and retail storefronts. We believe this approach allows us opportunities to successfully drive Lifetime Value (\"LTV\") while in...