Enhanced Group (NYSE:ENHA) has agreed to acquire an approximately 77% stake in European live entertainment company DEAG in an all-stock transaction, a move CEO and Co-Founder Maximilian Martin said will broaden Enhanced’s business beyond sports and consumer health products.
DEAG shareholders will receive one newly issued Enhanced share for every 1.7 DEAG shares, resulting in the issuance of approximately 11 million Enhanced shares, Martin said during an investor webinar. The transaction values DEAG at 4 euros per share, implying an equity value of 100 million euros.
Enhanced also raised $15 million through unregistered common stock, which it expects to close concurrently with the acquisition. Martin said the deal is likely to close in the first quarter of 2027, after which Enhanced will look to increase its ownership of DEAG over time and potentially acquire the entire company.
Apeiron, the family office of Enhanced Co-Founder Christian Angermayer and Enhanced’s largest shareholder, previously held a stake in DEAG. Martin said Enhanced appointed its three independent board members to a special committee that, with its own legal and financial advisers, reviewed the transaction and voted in favor of it.
Live entertainment expansion
Martin described the acquisition as part of a broader repositioning toward what he called the “flip side of AI,” based on his expectation that people will seek more live, shared experiences as artificial intelligence and robotics change how they spend their time.
DEAG’s businesses include festival ownership, concert production and promotion, spoken-word events and ticketing. Martin said the company produces approximately 6,000 events annually and that its myticket business sells more than 12 million tickets a year.
Enhanced expects DEAG to generate revenue of 520 million euros and EBITDA of 14 million euros in 2026, rising to 600 million euros and 27 million euros, respectively, in 2027. Martin attributed the projected growth to touring and concert promotion, along with continued investment in spoken-word events and ticketing, which he said have higher margins.
Martin said Enhanced negotiated a purchase price equal to 5.3 times forward-looking EBITDA. He argued that the valuation was lower than those of comparable public companies and previous live entertainment transactions.
Combined outlook and sports spending
On a combined basis, Enhanced projects $670 million in revenue for 2027, representing more than 20% growth from 2026, and an improvement in EBITDA from a $40 million loss to a positive $26 million. Martin said Enhanced expects its sports and consumer operations to break even in 2027.
To reduce sports spending, Enhanced is revisiting the format of its Enhanced Games, including a plan to shorten the event to three hours from six, with fewer athletes and events and lower prize and production costs. Martin said the company expects to operate sports on a budget of approximately $20 million next year.
Enhanced recorded $30 million in sponsorship revenue this year and aims to match or exceed that figure next year, Martin said. The company is also considering selling media rights and tickets and is speaking with cities about potential economic development financing.
Consumer products and further acquisitions
Martin said Enhanced recently added six peptides to its prescription telehealth offering and has begun shipping its supplements to 33 international markets beyond the U.S. The company is also preparing to launch Enhanced OS, a platform intended to use medical records, diagnostics and wearable data to help develop personalized recommendations.
Over time, Enhanced hopes to cross-sell consumer products to people reached through DEAG’s entertainment and ticketing businesses, Martin said, while acknowledging that the results remain to be seen.
The CEO said Enhanced is evaluating at least one additional platform acquisition for 2027, with potential targets including sports assets, telehealth businesses or a compounding pharmacy. He said DEAG has acquired more than 30 businesses over the past seven years and has a pipeline of approximately 20 potential further acquisitions.
About Enhanced Group (NYSE:ENHA)
We are a blank check company incorporated in the British Virgin Islands as a business company with limited liability and formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, which we refer to throughout this prospectus as our initial business combination. We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target.
