Selina to merge with BOA Acquisition Corp.

Selina, the experiential brand targeting Millennial and Gen Z travelers, and BOA Acquisition Corp., a publicly traded special purpose acquisition company, have reached a definitive business combination agreement that will make Selina a company listed on the stock exchange. The transaction values ​​the pro forma company at a net worth of approximately $ 1.2 billion. It is expected to close in the first half of 2022 and the combined company will operate as Selina Hospitality plc, and its common stock is expected to be listed on the New York Stock Exchange under the symbol “SLNA”.

Launched in 2015 by co-founders Rafael Museri, CEO, and Daniel Rudasevski, Director of Growth, Selina has secured a network of 134 properties in North and South America, Europe and the Middle East, of which 83 are open and operational . Since its inception, Selina has continued to expand its geographic reach by leveraging proprietary technology to identify underperforming hotels and transform them into cultural hubs through partnerships with local artisans, designers and suppliers. food and drink, in addition to introducing programming inspired by local experiences.

Selina has secured $ 350 million in committed capital from partners to expand its offering in 12 geographies, which is expected to add approximately 40,000 new beds to the Selina network by 2025. In addition to its pay-as-you-go offering , Selina introduced an innovative subscription service – Nomad Passport – which allows customers to stay in any Selina location for as long as they want, with full amenities including accommodation, coworking, activities wellness and locally organized events.

“We are looking to redefine the future of accommodation by building a brand and delivering experiences that resonate strongly with our customers,” said Museri. “Millennials and Gen Z travelers seek authenticity and world-class experiences every step of the way. They want to immerse themselves in the local culture of every place they visit. By partnering with local artisans to design culturally relevant and inspiring destinations, we create opportunities for them to forge lifelong bonds within the growing community of Selina. We’ve spent the past six years building and evolving an efficient and differentiated platform, and this transaction will allow us to bring Selina to more places and travelers around the world.

Brian Friedman, CEO of BOA, added: “Selina is capturing a large addressable market by providing accommodations and experiences that are not easily replicable. The platform is very efficient with the ability to scale quickly and produce attractive economic units. The Selina brand transcends hospitality and has created a loyal community and lifestyle that guests want to belong to long after their first stay. The company has proven that it can respond to both its clients and its real estate partners. We anticipate that Selina will continue to build on its significant growth in the years to come, as the ability to work from anywhere propels travelers to experience the world in ways their elders never could, by as digital nomads.

Museri added, “We are experiencing greater demand than before for COVID, and our new real estate offerings indicate how the Selina brand resonates with our target customers. Despite the challenges the pandemic has placed on global travel, our portfolio exceeds our long-term goals and we are excited about the next steps in our company’s evolution as a leading lifestyle brand and hotel operator. plan. “

Selina expects positive EBITDA by the first quarter of 2023 and revenue of around $ 1.2 billion by 2025, thanks to new openings, operational improvements and the maturation of its business. wallet.

Key terms of the transaction
A group of institutional investors including South Light Capital (a subsidiary of DigitalBridge), MORE Investment House and Sir Ronald Cohen, alongside the sponsor of BOA and shareholders led by the founders, have committed $ 70 million in capital, including one minimum amount of $ 15 million of BOA sponsor equity. Of the total, $ 10 million will be an advanced PIPE funded alongside the announcement, bolstering Selina’s track record as she rolls out new sites. Approximately $ 230 million is currently held in BOA’s trust account. Subject to any buyout by BOA shareholders, the existing Selina shareholders will retain approximately 71% of the ownership of the combined company.

The business combination is expected to provide Selina with $ 285 million (assuming there are no buyouts) of the gross proceeds from the transaction to further her mission of inspiring meaningful connections. The company will use the proceeds of the transaction to fuel its expansion into major urban markets around the world, as well as to invest in its proprietary technology and attract and retain high quality talent.

The boards of directors of Selina and BOA have unanimously approved the business combination. The transaction will require the approval of the shareholders of BOA and Selina and is subject to other customary closing conditions. The transaction is expected to be finalized in the first half of 2022.

PJT Partners acts as financial and capital markets advisor to Selina, and BofA Securities Inc. acts as capital markets advisor. Morgan, Lewis & Bockius LLP is acting as legal counsel. PJT Partners, UBS Investment Bank and BTIG LLC are acting as joint placement agents for the private placement.

UBS Investment Bank acts as senior capital markets advisor to BOA, while BTIG LLC acts as capital markets advisor and King & Spalding LLP acts as legal advisor.

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