Payoneer to become publicly traded company
New York-based financial services company Payoneer has announced it will go public with ‘blank check’ company FTAC Olympus Acquisition Corporation. The two have announced their entry into a definitive agreement and plan of reorganization. As per the press release, upon the reorganization, the newly created company will be renamed as Payoneer Global Inc.
Last year another US-based payments company, Billtrust, also went public.
According to the press release, Payoneer’s management team will continue to lead the company. Investors in Payoneer include TCV, Susquehanna Growth Equity (SGE), Viola Ventures, Wellington Management, Nyca Partners and Temasek.
The company has been valued at $3.3 billion which represents 7.6 times the 2021 expected revenue of $432 million, the press release noted. It also noted that the cash component of the purchase price to be paid to the equity holders of Payoneer is expected to be funded by FTOC’s cash in trust and $300 million private placement. The balance of the consideration payable to the existing shareholders will consist of shares of common stock of the company.
After the reorganization, the company expects to have up to $563 million in cash holdings. ‘The Reorganization has been unanimously approved by the boards of both Payoneer and FTOC. The transaction is expected to close during the first half of 2021’. The deal is subject to approval by the Securities and Exchange Commission (SEC).
Financial Technology Partners is serving as exclusive financial and capital markets advisor to Payoneer while Citi and Goldman Sachs & Co. LLC are serving as financial and capital markets advisors to FTOC. Goldman Sachs & Co. LLC and Citi are serving as placement agents on the PIPE.