UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2019.
Commission File Number: 001-38252
Spark
Networks SE
(Translation of registrant's name into English)
Kohlfurter Straße 41/43
Berlin 10999
Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.
Form 20-F
x
Form 40-F
¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________
Entry into a Material Definitive Agreement
Merger and Merger Agreement
On March 21, 2019, Spark Networks SE, a European stock corporation
(
Societas Europaea
, SE) with its corporate seat in Germany ( “
Parent
”), entered into an Agreement and
Plan of Merger by and among Chemistry Inc., a Delaware corporation and wholly owned subsidiary of Parent (“
Merger Sub
”),
Zoosk, Inc., a Delaware corporation (the “
Company
”), and Fortis Advisors LLC, a Delaware limited liability company,
solely in its capacity as the Holders’ Representative (the “
Merger Agreement
”).
The Merger Agreement provides that, upon the terms and subject
to the conditions set forth therein, Merger Sub will be merged with and into the Company, and the separate existence of Merger
Sub will cease, and the Company will become a wholly owned subsidiary of Parent (the “
Merger
”).
The Merger Agreement was adopted by the administrative board
(
Verwaltungsrat
) of Parent (the “
Parent Board
”) and the board of directors of the Company.
Merger Consideration
The aggregate consideration to be paid to the
Company’s equity holders in the Merger (i) $115,000,000 in cash (the “
Merger Aggregate Cash
Consideration
”) and (ii) 12,980,000 Parent ADSs (the “
Merger Aggregate Stock Consideration
”),
subject to potential adjustment as provided in the Merger Agreement.
Subject to the terms and conditions of the Merger Agreement,
at the date and time when the Merger becomes effective (the “
Effective Time
”):
(i) each share of capital stock of the Company
(“
Company Capital Stock
”) that is issued and outstanding immediately prior to the Effective Time (other than
dissenting shares and shares that are owned by the Company as treasury stock or by Parent or Merger Sub) will be cancelled and
automatically converted into the right of the stockholders of the Company to receive, in respect of each such share, (A) the Per
Share Closing Cash Consideration and the Per Share Stock Consideration (each as defined in the Merger Agreement) and (B) each stockholder’s
pro rata portion of the Post-Closing Cash Consideration (as defined in the Merger Agreement), if any;
(ii) the portion of each option to purchase
Company Capital Stock that is vested and exercisable immediately prior to the Effective Time (each such portion, a “
Vested
Option
”) and that has an exercise price per share less than the Per Share Merger Aggregate Consideration (as defined
in the Merger Agreement) will be cancelled and automatically converted into the right to receive an amount in cash, without interest
and subject to any applicable withholding, equal to (1) the product of (x) the number of shares of Company common stock then subject
to such Vested Option multiplied by (y) the applicable Per Option/Warrant Closing Payment (as defined in the Merger Agreement)
and (2) the applicable pro rata portion of the Post-Closing Cash Consideration in respect of such Vested Option, if any;
(iii) the portion of each option to purchase
Company Capital Stock that is not a Vested Option immediately prior to the Effective Time will be cancelled and extinguished at
the Effective Time without any present or future right to receive any portion of the Merger consideration; and
(iv) each warrant to purchase Company Capital
Stock, whether vested or unvested, that has a per share exercise price that is less than the Per Share Merger Aggregate Consideration
and is outstanding immediately prior to the Effective Time (each, a “
Cash-Out Warrant
”) will be cancelled and
automatically converted into the right to receive an amount in cash, without interest and subject to any applicable withholding,
equal to (A) the product of the number of shares of Company common stock subject to such Cash-Out Warrant multiplied by the applicable
Per Option/Warrant Closing Payment and (B) the applicable pro rata portion of the Post-Closing Cash Consideration in respect of
such Cash-Out Warrant, if any.
Notwithstanding the foregoing, (x) $10 million
of the cash consideration will be held back by Parent until December 31, 2020 in order to satisfy any indemnity obligations of
the holders of shares of Company Capital Stock, Vested Options, Cash-Out Warrants that are issued and outstanding immediately prior
to the Effective Time and each recipient of cash and/or Parent ADSs under the Company Liquidity Bonus Plan (as defined in the Merger
Agreement) and (y) $1 million of the cash consideration will be placed in escrow for purposes of satisfying the post-closing purchase
price adjustment, if any.
Parent Capital Increase; Share Exchange
The exchange of Company Capital Stock against the Merger Aggregate
Stock Consideration (as defined in the Merger Agreement) as agreed under the Merger Agreement will be implemented by means of an
increase in the registered share capital (
Grundkapital
) of Parent pursuant to Section 182
et seq.
of the German Stock
Corporation Act (
Aktiengesetz
) (such increase the “
Parent Capital Increase
”). The Parent Capital Increase
will be resolved upon by the general meeting (
Hauptversammlung
) of Parent (the “
Parent General Meeting
”,
and the resolution by the Parent General Meeting on the Parent Capital Increase the “
Parent Capital Increase Resolution
”).
Under the Parent Capital Increase, Parent will issue the Merger Aggregate Stock Consideration to a financial institution (such
institution the “
Contribution Agent
”) for the benefit of the former holders of Company Capital Stock against
the prior contribution and transfer by the Contribution Agent to Parent of all of the issued and outstanding shares of the Company
as the surviving corporation of the Merger.
Termination
The Merger Agreement may be terminated prior to the
Effective Time including: (i) by mutual written consent of Parent and the Company; (ii) by either Parent or the Company in
the event that the Merger will not have been consummated by August 21, 2019; (iii) by either Parent or the Company if a court
or other governmental authority has issued a final non-appealable order or similar action prohibiting consummation of the
Merger or the transactions contemplated by the Merger Agreement; (iv) by Parent if the requisite Company stockholder approval
for the Merger (the “
Company Stockholder Approval
”) is not obtained; (v) by the Company if the requisite
Parent stockholder approval for increase in registered share capital of Parent (the “Parent
Stockholder Approval”) is not obtained; (vi) by either Parent or the Company, if Parent has not obtained the debt
facility, to be arranged by Piper Jaffray & Co. and contemplated by the Merger Agreement, due to failure of the Company
or Parent, respectively, to satisfy the applicable Company Adjusted EBITDA (as defined in the Merger Agreement) or Parent
Adjusted EBITDA (as defined in the Merger Agreement), respectively; and (vii) by Parent or the Company in the event of a
breach by the other party of any covenant or agreement or any representation or warranty that would result in the failure of
certain conditions of the Merger or of certain other covenants.
Conditions to Closing
Consummation of the Merger is subject to customary conditions,
including, among others things, the Parent Stockholder Approval and the Company Stockholder Approval.
Board of Directors
As of the date of the Merger Agreement, the Parent Board consists
of seven members. Following the consummation of the Parent Capital Increase, the Parent Board will consist of eight members to
be comprised of six members selected by Parent and two directors selected by the Company, subject to certain procedural and other
requirements under German law as set forth in the Merger Agreement.
Representations and Warranties; Covenants
The Merger Agreement contains customary representations and
warranties made by each of Parent, Merger Sub and the Company. Parent and the Company have also agreed to various covenants in
the Merger Agreement, including, among other things, covenants (i) to conduct their respective business and operations in the ordinary
course of business, (ii) to seek the other party’s consent prior to taking certain actions prior to the closing of the Merger,
and (iii) not to solicit other acquisitions proposals and not to enter into discussions concerning, or provide information in connection
with, alternative transactions.
California Fairness Hearing
As promptly as practicable after the date of the Agreement,
Parent will prepare, with the cooperation of the Company, an application to obtain from the Commissioner of Business Oversight
of the State of California, after a hearing before the California Commissioner pursuant to the California Corporations Code, including
Sections 25121 and 25142 thereof, a permit (the “
California Permit
”) to issue securities in exchange for outstanding
securities, the obtainment of which would result in the issuance of ordinary no-par value registered shares (
auf den Namen lautende
Stückaktien
) of Parent (the “
Parent Ordinary Shares
”) in the Merger (and the Parent ADSs representing
such Parent Ordinary Shares) being exempt from registration under the Securities Act of 1933, as amended by virtue of the exemption
provided by Section 3(a)(10) thereof, and Parent intends to apply for the California Permit on or before the date that is 10 business
days after the date of the Agreement.
Company Stockholder Approval
Pursuant to the Merger Agreement, the Company must,
immediately after the issuance of the California Permit, seek to obtain and, within two Business Days
of such issuance, must deliver to Parent a written consent from certain Company stockholders providing irrevocably the
Company Stockholder Approval.
Termination Fee
Upon certain events, if the Merger Agreement is terminated
by Parent, the Company is obligated to pay Parent $5,000,000. Upon certain events, if the Merger Agreement is terminated
by the Company, Parent is obligated to pay the Company $5,000,000.
Additional Agreements
Concurrently with the execution of the Merger Agreement, (i)
certain stockholders of Parent entered into support agreements with the Company pursuant to which such stockholders have
agreed, among other things, to vote their Parent Ordinary Shares in favor of the Parent Capital Increase Resolution, the approval
and adoption of the Merger Agreement and the transactions contemplated thereby (the “
Support Agreements
”), and
(ii) certain stockholders of the Company entered into (A) voting agreements with Parent and the Company pursuant to which
such stockholders agreed, among other things, to vote their Company Capital Stock stock in favor of the approval and adoption
of the Merger Agreement and the Charter Amendment (as defined in the Merger Agreement) (the “
Voting Agreements
”)
and (B) joinder agreements with Parent and the Company pursuant to which such stockholders have agreed, among other things, to
be bound by certain terms of the Merger Agreement and to release Parent and the other released parties therein from certain claims
relating to the Company, subject to certain exceptions (the “
Joinder Agreements
”).
In addition, in connection with the execution of the Merger
Agreement, Parent received debt commitment letters from certain lenders as arranged by Piper Jaffray & Co.
The foregoing summary does not purport to be complete and
is qualified in its entirety by the text of the Merger Agreement, which is attached as Exhibit 2.1 hereto and is incorporated
herein by reference.
Forward-Looking Statements
This Form 6-K may contain forward-looking
statements. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties, and other factors that may cause Parent’s or the Company’s or the combined
company’s performance or achievements to be materially different from those of any expected future results, performance,
or achievements. Forward-looking statements speak only as of the date they are made, and Parent does not assume any duty to update
forward-looking statements. Parent cautions readers that a number of important factors could cause actual results to differ materially
from those expressed in, or implied or projected by, such forward-looking statements. The following factors, among others, could
cause actual results to differ from those set forth in the forward-looking statements: (i) the possibility that the proposed transaction
does not close when expected or at all because required shareholder or other approvals and other conditions to closing are not
received or satisfied on a timely basis or at all; (ii) changes in Parent’s share price before closing, including as a result
of the financial performance of the Company prior to closing, or more generally due to broader stock market movements, and the
performance of peer group companies; (iii) the risk that the benefits from the transaction may not be fully realized or may take
longer to realize than expected, including as a result of changes in general economic and market conditions, interest and exchange
rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business
areas in which Parent and the Company operate; (iv) the ability to promptly and effectively integrate the businesses of Parent
and the Company; (v) the reaction to the transaction of the companies’ customers, employees and counterparties; (vi) diversion
of management time on merger-related issues; (vii) lower-than-expected revenues, credit quality deterioration or a reduction in
net earnings; and (viii) other risks that are described in Parent’s public filings with the SEC. For more information, see
the risk factors described in Parent’s Annual Report on Form 20-F and other filings with the SEC.
Additional Information About the
Merger and Where to Find It
The merger will require the approval of
the Company’s stockholders, and the issuance of the Parent ADSs comprising the Merger consideration will require
the approval of Parent’s shareholders.
This Form 6-K is not a recommendation in favor of a vote on the transaction,
nor is it a solicitation of proxies in connection with any such vote.
Parent will hold a general meeting of shareholders
in connection with the Merger. The parties intend that Parent will issue Parent ADSs in the Merger in reliance upon an
exemption from registration provided by Section 3(a)(10) of the Securities Act of 1933, as amended, following a fairness
hearing to be convened by the Commissioner of the California Department of Business Oversight. Equityholders of the Company
are advised to read the important information about the transaction and the details about the fairness hearing, including a
formal notice of the hearing, that will be published and made available to the Company’s equityholders in accordance
with Section 25142 of the California Corporations Code, and shareholders of Parent are advised to read the important
information about the transaction provided in materials for the general meeting of shareholders.
The information statement, fairness hearing notice,
and other relevant materials (when they become publicly available) may be obtained free of charge by contacting Parent at
legal@affinitas.de.
This communication does not constitute
an offer to sell, or a solicitation of an offer to buy, any securities.
Exhibit Index
Exhibit
No.
|
|
Description
|
2.1
|
|
Agreement and Plan of Merger, dated March 21, 2019
|
99.1
|
|
Joint Press Release of Spark Networks SE and Zoosk, Inc., dated March 21, 2019
|
99.2
|
|
Spark Networks SE Investor Presentation, dated March 21, 2019
|
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.
|
By:
|
/s/ Jeronimo Folgueira
|
|
|
|
Name: Jeronimo Folgueira
|
|
|
|
Title: Chief Executive Officer
|
|
Date: March 22, 2019
|
By:
|
/s/ Robert O’Hare
|
|
|
|
Name: Robert O’Hare
|
|
|
|
Title: Chief Financial Officer
|
|
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