The combined company is expected to have gross proceeds of up to $691m, including up to $276m of cash with Concord Acquisition
Circle to merge with Concord in $4.5bn deal. (Credit: Gerd Altmann from Pixabay.)
Circle has agreed to merge with Concord Acquisition, a publicly traded special purpose acquisition company (SPAC), at an enterprise value of $4.5bn.
Circle is a financial technology firm engaged in providing payments and treasury infrastructure for internet businesses.
The company is the prime operator of USD Coin (USDC), the dollar digital currency with more than $25bn circulation, which supported more than $785bn in on-chain transactions.
Under the terms of the agreement, a new Irish holding company will acquire both Concord and Circle and become a public company trading on the New York Stock Exchange (NYSE).
Institutional investors Marshall Wace, Fidelity Management & Research Company, Adage Capital Management, accounts advised by ARK Investment Management and Third Point supported the merger with $415m in PIPE financing.
Together with up to $276m of cash held in Concord Acquisition’s trust account, the merger would deliver up to $691m of gross proceeds to the combined company.
Concord Acquisition chairman Bob Diamond said: “Circle is the true pioneer of trusted digital currencies, an increasingly critical part of the global financial system.
“The firm has earned its exceptionally strong reputation building highly innovative blockchain-enabled products and services within the regulatory perimeter.
“Circle’s world-class leadership team, its track record of delivery, and extraordinary ambition help position the firm as one of the most exciting companies in the transformation of finance.”
Upon closing of the transaction, existing Circle shareholders are expected to possess nearly 86% ownership stake in the combined company.
Circle intends to use the proceeds from the transaction to support its ongoing product development, in collaboration with its initial customers.
The transaction has been unanimously approved by the board of directors of both Concord Acquisition and Circle.
Closing of the transaction is anticipated in the fourth quarter of 2021, subject to approval by shareholders and other customary closing conditions, including regulatory approvals.
Circle co-founder and CEO Jeremy Allaire said: “Circle was founded with a mission to transform the global economic system through the power of digital currencies and the open internet.
“We’ve made huge strides towards realising this vision, and through this strategic transaction and ultimate public debut, we are taking an even bigger step forward.
“We are thrilled to partner with Concord’s executive and investment team, drawing on their decades of operating experience growing financial services businesses around the world.”