PayLink Direct and Olive.com go public via merger with MDH Acquisition
PayLink Direct and Olive.com, affiliated businesses and leaders in payment services and online vehicle protection plans, today announced that they will go public in a business combination with MDH Acquisition Corp.. The new public company, Olive.com, will be a combination of two proven growth platforms: Olive.com’s current digital vehicle protection plan platform and PayLink Direct’s current industry leading payment services operation. Upon completion of the business combination, CEO Rebecca Howard will become CEO of the new public company and MDH’s Executive Chairman, Franklin McLarty, a proven business builder with deep experience in the automotive and transportation sectors, will become its Chairman. Upon the close of the proposed transaction, the combined company will be named Olive Ventures Holdings, Inc. and be called Olive.com. It will be listed on the NYSE under the ticker symbol “OLV.”
Olive.com, the leader in payment services and online vehicle protection plans, was built to give customers peace of mind. Vehicle protection plans cover mechanical failure of the vehicle after the manufacturer’s warranty has expired. Olive.com’s digital platform has created a wave of new consumer buyers to the vehicle protection plan market with over 59% of its customers being first time buyers. Consumers are now able to buy a vehicle protection plan, on their own terms and in the comfort of their home through Olive.com. This digital platform lets consumers buy direct, with no pressure, the way they want to buy, giving them an assortment of coverage and deductible options that are convenient and fit their budget. Olive.com provides consumers products that are approachable, affordable, transparent and user-friendly – real choice, all digital at any time day or night.
The proposed transaction values Olive.com at an initial pro-forma enterprise value of approximately $960 million. Following the completion of the business combination, the cash in trust and the investment from PIPE investors will allow Olive.com to expand and continue to deliver its product offerings to a growing $260 billion addressable market -- including 280 million total cars on the road today, 87 million of which are between 6-12 years old. Research shows that the average age of a car on the road hit a record high of 12.1 years during the pandemic, with 25% of cars aged 16 years or older. This trend is expected to continue, and an increasingly aged fleet will drive the need for vehicle service and mechanical breakdown coverage. Olive.com provides an essential product for consumers at a time when at least 33% of car owners could not afford $500 to $600 in automotive repairs and 60% would have difficulty covering a $1,000 repair expense.
Oppenheimer & Co. Inc. is serving as financial advisor to Olive.com. Keefe, Bruyette & Woods, Inc. (“KBW”) is serving as financial advisor to MDH. Oppenheimer & Co. Inc. and KBW are serving as placement agents on the PIPE. Stifel, Nicolaus & Company, Incorporated ("Stifel") and KBW are acting as capital markets advisors to MDH. Shearman & Sterling LLP is acting as legal advisor to MDH. Kirkland & Ellis LLP is acting as legal advisor to Olive.com. Stifel and Oppenheimer & Co. Inc. acted as joint bookrunning managers for MDH’s initial public offering.