David's Bridal to Spin Off AI Platform Pearl in $350 Million SPAC Deal

David's Bridal has signed a nonbinding letter of intent to separate its AI platform Pearl into a stand-alone, publicly traded company through a combination with special purpose acquisition company K&F Growth Acquisition Corp II, valuing Pearl at $350 million. Under the proposed deal, Pearl will acquire David's Bridal's intellectual property and brand, then license it back to the retailer. The transaction anticipates $75 million in private investment in public equity funding, including a $25 million anchor investment from CION Investment Corporation, David's Bridal's largest shareholder. The deal is expected to close in the first half of next year. Current David's Bridal CEO Kelly Cook is expected to become chief executive of Pearl, while the company searches for a successor to lead David's Bridal. Cook will remain on the retailer's board. Pearl projects revenue growth of over $85 million in 2027 and is expected to be debt free following the deal. David's Bridal stores will operate as usual with no disruptions.