Pivotal Announces Extension of KLDiscovery Agreement


Pivotal Announces Extension of KLDiscovery Agreement

Oct 31, 2019 INTEL by Kristi Marvin

But by only one week….

Pivotal Acquisition Corp. (PVT), put out a press release this morning announcing it has entered into an amendment to its definitive agreement with KLDiscovery (“KLD”), moving the outside date to consummate the proposed merger from October 31, 2019 to November 6, 2019.

Tellingly, Pivotal also stated that it, “is in the process of analyzing multiple expressions of interest from several financial institutions that would be used to provide financing for both the transaction and the post-closing expansion goals of KLD.”  This implies a re-cut of the deal is forthcoming. There have been rumors of a re-cut prior to this, but this would seem to add more weight to those rumors.

However, a one week extension is a fairly short amount of time and it would be impossible to “consummate” the proposed merger by November 6th, given that PVT/KLD only have a preliminary proxy on file that still has blanks and missing dates.  The implication being that there needs to be some sort of consensus amongst the parties in one weeks time, at which point, they would extend the outside date again.

Furthermore, if we try and read between the lines, giving only one week implies someone is applying a little bit of pressure, i.e., fish or cut bait.  Perhaps both sides have been circling the issue of amending the deal for awhile and someone is getting impatient. Especially since the PVT team has a second SPAC in the market (Pivotal Investment Corp., PIC).  Things could get awkward if PIC would like to announce their deal, but PVT is still in a holding pattern with KLD.

Regardless, we only have to wait one week to have some sort of indication as to where this deal is headed.  Stay tuned for any further developments.