Payoneer processed more than $ 44 billion in payments last year.
Photographer: gutaper / iStock / Getty Images
Photographer: gutaper / iStock / Getty Images
Payoneer Inc., the online payment company used by people like Airbnb Inc., agreed. and Amazon.com Inc., to go public by merging with a blank check company led by Betsy Cohen.
The agreement with FTAC Olympus Acquisition Corp. valuing Payoneer at $ 3.3 billion, the companies said in a statement Wednesday. The deal also includes PIPE $ 300 million, or private investment in public equity.
Founded in New York in 2005, Payoneer said it is profitable and expects to raise $ 432 million in revenue by 2021. The company, which allows e- send and receive money trading worldwide, having paid more than $ 44 billion in payments last year. .
“Payoneer is a great example – and I would be desperate to find out for another one that is so advanced – in which the consumer adoption loops and the ability of technology to melt and come together are so good,” Cohen said.
The payments industry has been awakened by interest from blank check companies, which raise money from investors and then aim to merge with private business. The Payoneer contract follows a similar notice from Paysafe Group Ltd. who agreed to go public by joining a white check company led by billionaire Bill Foley.
Future M&A
Sending and receiving money abroad can be beneficial for payment companies, but such transactions were thwarted after a foreign pandemic coronavirus foreign travel. The exception was cross-border e-commerce volumes, with consumers tapping into paying for goods and services online from shops around the world.
Following their first public visit, the company plans to expand its offerings that will allow businesses to interact with each other overseas, an area that has long been dominated by expensive wire payments and paper inspections. The company also hopes to make more mergers and acquisitions.
“We are excited not only to have a bigger balance sheet but also public money,” Payoneer CEO Scott Galit said in an interview. Markets can help the company enter new markets or build new products “faster than we could just do everything organically.”
Design Details
Bloomberg News reported last year that talks over a deal were ongoing. Wellington Management, an existing shareholder in Payoneer, along with funds managed by Millennium Management and Fidelity, are among investors participating in the PIPE, according to a statement Wednesday. .
The companies are expected to raise $ 563 million in cash. Payoneer’s existing shareholders – a group that includes TCV, Susquehanna Growth Equity, Viola Ventures, Nyca Partners and Temasek – will remain the largest investors in the next-generation company. -organized.
The agreement is expected to close in the first half. Financial Technology Partners served as financial and capital markets advisor to Payoneer. Citigroup Inc. played. and Goldman Sachs Group Inc. both positions for Cohen’s blank check company, while also being place representatives on the private space at the same time.
“As we’ve achieved to get to where we are, we really think we’re just scratching the surface and we’re just in the early stages,” Galit said. “We have a busy agenda.”