Pivotal Acquisition Corp. Announces $150 Million Backstop Commitment from MGG Investment Group and Stockholder Meeting Date of December 12, 2019

Pivotal Acquisition Corp. (NYSE: PVT) (“Pivotal” or the “Company”) a public investment vehicle, and KLDiscovery (“KLD”), a leading global provider of electronic discovery, information governance and data recovery services, announced today that the Company and KLD have entered into a commitment letter with MGG Investment Group, LP (“MGG”) pursuant to which MGG has committed to invest $150 million in the form of a debenture (the “Debenture”) pursuant to the forward purchase contract entered into by MGG’s affiliate in connection with Pivotal’s initial public offering.

Pivotal also announced that the stockholder meeting to approve the proposed transaction between Pivotal and KLD has been set for December 12, 2019. Holders of record of Pivotal common stock at the close of business on November 18, 2019 will be entitled to vote at the meeting to approve the proposed transaction.

“Existing KLD shareholders will continue to hold 100% of their shares in the Company and now have a clear path to a deal closing,” said Kevin Griffin, CEO of MGG and a director of Pivotal. “We are excited to provide this commitment of $150 million given our belief in the growth prospects of KLD. This backstop gives KLD further flexibility to repay its high priced second lien debt and lower its interest payments,” said Griffin.

“This financing will substantially increase cash flow and enable KLD to reignite its acquisition program,” said Jon Ledecky, Pivotal’s Chief Executive Officer. “I am excited to work with KLD CEO Chris Weiler and his talented management team to pursue new business opportunities and leverage Pivotal’s corporate and legal community network.”

“We are looking forward to closing this transaction next month,” said Chris Weiler, KLD’s Chief Executive Officer. “We intend to aggressively pursue what we believe is an excellent pipeline of acquisition targets to enhance the KLD service and product offering, resulting in profitable revenue growth.”

The Debenture has a term of 5 years and may be repaid at any time after closing of the merger without any prepayment penalty. The Debenture is not convertible at the option of the holder. However, in the event the Company elects to pre-pay the Debenture, MGG will have a right to purchase common stock from the Company in an amount commensurate in value to the pre-payment at the average price per share for the five days prior to the pre-payment. If the Company’s stock trades at $18 or higher for any 20 trading days within a 30 trading-day period, the Company has the right to force a mandatory conversion. The Debenture will pay interest in cash at a rate of 4% and further 4% in payment-in-kind interest. The principal amount and paid-in-kind interest is due at maturity of the Debenture. The face amount of the Debenture will increase up to the maximum of $150 million as the amount of proceeds in Pivotal’s trust account, after giving effect to any potential public stockholder redemptions, decreases below $230 million.