Paysafe to List in US After a $9bln Merger
It has been announced that a blank-check acquisition firm that is backed by investor Bill Foley has reached a deal to merge with Paysafe Group Holdings Ltd. The deal puts a value of around $9 billion on the payment platform, which is popular with casino players across the world.
According to the companies, the merger of Paysafe with special purpose acquisition company (SPAC) Foley Trasimene Acquisition Corp II will see the London-based company listed on the New York Stock Exchange with the symbol PSFE.
There were rumours on Sunday that a deal was going to be announced, and it saw shares in Foley Trasimene shoot up 12% pre-market.
In a recent interview, Foley had said that he was eager to merge with Paysafe as it has various scalable businesses, “It’s in a great position and we plan to take advantage of that,” he said.
The coronavirus pandemic has seen financial technology companies become more appealing as acquisition targets as more people switch to shopping online and making digital payments.
The Chief Executive of Paysafe, Philip McHugh, is set to retain his role after the deal. He said that the company is aiming to grow its digital wallet product by acquiring numerous players in the industry and to expand on its position in the growing US sports betting market.
Part of the deal’s financing is set to come from private investment in public equity (PIPE). They seek to raise $2 billion, which would make it one of the largest such instruments ever.
The PIPE funding was secured across 74 Zoom meetings in three weeks between Foley and McHugh. The deal will see Paysafe return to the stock market having been taken private by Blackstone Group Inc. and CVC Capital Partners in 2017 for $4.7 billion.
The two private equity firms will be the company’s largest investors. The Senior Managing Director at Blackstone, Martin Brand, has said that it hopes to benefit from the expected strong performance of Paysafe by retaining the majority of its investment.