The new agreement replaces Circle’s previous merger agreement, which increases its enterprise value to $9bn from $4.5bn
Circle revises SPAC merger with Concord. (Credit: WorldSpectrum from Pixabay)
Circle Internet Financial has signed a new agreement to merge with Concord Acquisition, a special purpose acquisition company (SPAC), to become a public company.
The payments technology company has scrapped its previous merger agreement with Concord announced in July last year, which valued the company at $4.5bn.
With the new agreement, Circle’s enterprise value reaches $9bn.
The rise in valuation indicates improvements in Circle’s financial outlook and competitive position, including the growth and market share of USDC.
USDC is one of the dollar digital currencies, and its circulation has more than doubled since the deal was announced, reaching $52.5bn as of this month.
Circle co-founder and CEO Jeremy Allaire said: “Circle has made massive strides toward transforming the global economic system through the power of digital currencies and the open internet.
“Being a public company will further strengthen trust and confidence in Circle and is a critical milestone as we continue our mission to build a more inclusive financial ecosystem.”
The new agreement replaces the previous merger agreement, which could not be completed by the termination date of 3 April 2022, for various reasons out of both parties’ control.
Under the terms of the new deal, the holding company established in connection with the original merger will acquire both Concord and Circle and becomes a publicly traded entity.
The new agreement has an initial outside date of 8 December 2022, with an option to extend such a date to 31 January 2023, under certain circumstances.
The revised transaction agreement has been approved by the Board of Directors of both Concord Acquisition and Circle.
Closing of the transaction is subject to approval by shareholders of Concord and Circle and other customary closing conditions, including regulatory approvals.
Upon closing of the merger, current shareholders of Concord will exchange their shares of Concord common stock for equity of the combined company.
Concord Acquisition chairman Bob Diamond said: “We continue to believe that Circle is one of the most interesting, innovative and exciting companies in the evolution of global finance and we believe it will have a historic impact on the global economic system.
“Circle’s rapid growth and world-class leadership are underscored by a regulatory-first mindset fixed on building trust and transparency in global markets.
“We believe our new deal is attractive because it preserves the ability of Concord’s public stakeholders to participate in a transaction with this great company.”