Hagerty Acquires Full Control of Hagerty Motorsport
Ticker: HGTY · Form: 8-K · Filed: Jul 26, 2024 · CIK: 1840776
| Field | Detail |
|---|---|
| Company | Hagerty, Inc. (HGTY) |
| Form Type | 8-K |
| Filed Date | Jul 26, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.0001, $11.50 |
| Sentiment | neutral |
Sentiment: neutral
Topics: acquisition, joint-venture, subsidiary
Related Tickers: HGTY
TL;DR
Hagerty is buying out its partner in Hagerty Motorsport, taking full ownership.
AI Summary
Hagerty, Inc. announced on July 25, 2024, that it has entered into a definitive agreement to acquire the remaining 50% equity interest in Hagerty Motorsport from its joint venture partner, Motorsport Network LLC. This acquisition will make Hagerty Motorsport a wholly-owned subsidiary of Hagerty, Inc. The transaction is expected to close in the third quarter of 2024.
Why It Matters
This move consolidates Hagerty's ownership of its motorsport division, potentially leading to greater strategic alignment and operational efficiency within that segment of its business.
Risk Assessment
Risk Level: medium — The acquisition involves integrating a previously joint-ventured entity, which can present integration challenges and financial considerations.
Key Players & Entities
- Hagerty, Inc. (company) — Registrant
- Hagerty Motorsport (company) — Acquired entity
- Motorsport Network LLC (company) — Joint venture partner
- July 25, 2024 (date) — Date of agreement
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the primary purpose of this 8-K filing?
The primary purpose is to announce Hagerty, Inc.'s definitive agreement to acquire the remaining 50% equity interest in Hagerty Motorsport from Motorsport Network LLC.
Who is Hagerty, Inc. acquiring the remaining stake from?
Hagerty, Inc. is acquiring the remaining stake from its joint venture partner, Motorsport Network LLC.
What is the expected closing timeframe for this acquisition?
The transaction is expected to close in the third quarter of 2024.
What will be the ownership status of Hagerty Motorsport after the transaction?
Hagerty Motorsport will become a wholly-owned subsidiary of Hagerty, Inc. after the transaction.
What was the previous ownership structure of Hagerty Motorsport?
Hagerty Motorsport was previously a joint venture between Hagerty, Inc. and Motorsport Network LLC, with each holding a 50% equity interest.
Filing Stats: 509 words · 2 min read · ~2 pages · Grade level 10.2 · Accepted 2024-07-26 06:18:42
Key Financial Figures
- $0.0001 — stered Class A common stock, par value $0.0001 per share HGTY The New York Stock Excha
- $11.50 — mon stock, each at an exercise price of $11.50 per share HGTY.WS The New York Stock Ex
Filing Documents
- hgty-20240725.htm (8-K) — 24KB
- 0001628280-24-033053.txt ( ) — 194KB
- hgty-20240725.xsd (EX-101.SCH) — 3KB
- hgty-20240725_def.xml (EX-101.DEF) — 17KB
- hgty-20240725_lab.xml (EX-101.LAB) — 30KB
- hgty-20240725_pre.xml (EX-101.PRE) — 17KB
- hgty-20240725_htm.xml (XML) — 4KB
01 Other Events
Item 8.01 Other Events. On July 25, 2024, Hagerty, Inc., a Delaware corporation (the " Company "), settled the exchange (the " Mandatory Exchange ") of 1,052,503 warrants that remained outstanding after the completion of its previously announced exchange offer (the " Offer " and, together with the Mandatory Exchange, the " Exchange Offer ") through the issuance of 189,438 shares of Class A Common Stock of the Company, par value $0.0001 per share (the " Class A Common Stock "). No Company warrants remain outstanding following the Mandatory Exchange. Accordingly, the Company's public warrants were suspended from trading on the New York Stock Exchange and will be delisted. In the Exchange Offer and associated warrant exercises, the Company issued an aggregate of 3,876,201 shares of Class A Common Stock in exchange for 19,483,539 warrants.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HAGERTY, INC. /s/ Diana M. Chafey Date: July 26, 2024 Diana M. Chafey Chief Legal Officer and Corporate Secretary