Vince Holding Corp. Common StockVince shares jumped 36% as investors factored in its OVO acquisition, a nominal-price deal plus a 5% stake in the IP entity and a 10-year exclusive license.

Vince Holding Corp. shares rose more than 36% in Monday trading as investors began factoring in the company's recent OVO acquisition. The New York City-based apparel company acquired OVO's operating business last month, including its stores, e-commerce platform, wholesale relationships, operating companies, assets and liabilities in Canada, the U.S., and the United Kingdom. As part of the transaction, Authentic Brands Group separately acquired the majority of OVO's intellectual property; Vince paid a nominal amount for the operating business and $6M for a 5% equity interest in the new IP-owning entity, with Authentic owning 51% and rapper Drake owning 44%. Vince also secured an exclusive 10-year license to use the OVO brand IP to manufacture and sell licensed apparel globally, paying royalties to Authentic, a structure expected to let Vince control the commercial execution of OVO without purchasing majority ownership of the brand itself. Shares were up 36.9% at 12:37 p.m. and traded as high as $7.28 earlier in the session.
Vince Holding Corp. Common StockVince shares jumped 36% as investors factored in its OVO acquisition, a nominal-price deal plus a 5% stake in the IP entity and a 10-year exclusive license.
Authentic Brands separately acquired majority of OVO's IP and owns 51% of the new IP entity, but the article gives no clear positive/negative read on Authentic itself.