David's Bridal to Spin Off AI Unit 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, in a deal that values Pearl at $350 million.

Pearl, currently a subsidiary of David's Bridal, will combine with special purpose acquisition company K&F Growth Acquisition Corp II. The deal is anticipated to close in the first half of next year, according to a Thursday press release.

The transaction anticipates $75 million in private investment in public equity funding. That includes a $25 million anchor investment from CION Investment Corporation, David's Bridal's largest shareholder.

Under the structure, Pearl will own David's Bridal's intellectual property and brand, a company spokesperson confirmed. After Pearl acquires the IP, it will license it back to David's Bridal. David's Bridal will remain a "material ongoing shareholder in Pearl," according to the company, and the two businesses expect long-term agreements designed to drive growth on both sides.

Who will run each company?

Current David's Bridal CEO Kelly Cook is expected to become chief executive of Pearl. David's Bridal has engaged an executive consultant who has been working closely with Cook and her team on daily oversight of the retail business, according to a spokesperson. Cook will remain on the board of David's Bridal.

The company is searching for a new chief executive for David's Bridal and expects to have one in place before the proposed split is finalized. David's Bridal's stores will operate as usual with no disruptions, the company said.

"Pearl is shaping the next generation of wedding planning, and this next step will give both businesses room to grow independently while continuing to strengthen each other," Cook said in a statement. "With Pearl's agentic technology and proven business model, combined with David's Bridal's strong brand and retail presence, we see tremendous opportunities to help more couples plan their weddings and connect with vendors who can bring their visions to life."

What does the Pearl platform include?

The Pearl ecosystem spans three pieces:

• Pearl Planner, the wedding planning platform
• Pearl Connect, the AI vendor platform
• The Pearl Digital Content Network, which includes original programming, YouTube channels, blogs and social media profiles

Pearl projects revenue growth of over $85 million in 2027 and expects to be debt free following the deal. The company says separating the retail operations of David's Bridal from the AI-focused wedding planning and media platform will accelerate both entities.

How did the company get here?

Cook was named CEO of David's Bridal in the spring of 2025. At that time, the company announced the "biggest shift" in its 75-year history, moving away from its role as a traditional bridal retailer toward a digital-first strategy.

The retailer said it would evolve into an asset-light company that uses AI to scale its retail media network, planning platform and retail strategy, a concept it named the Aisle to Algorithm plan. This spring, the company reshaped its C-suite as part of efforts to scale its tech, AI, operations and revenue initiatives.

For marketers and vendors in the wedding category, the split creates a separately capitalized AI and media business with a public currency to fund growth. The licensing structure keeps the David's Bridal brand attached to both entities while Pearl chases its 2027 revenue target.