The merger values the combined company, which will be a major e-commerce point-of-sale platform for nonprime consumers, at nearly $1bn  


Katapult to get listed on Nasdaq after the merger. (Credit: Pixabay/Gerd Altmann.)

Katapult, an e-commerce focused fintech firm has agreed to merge with FinServ Acquisition, a special purpose acquisition company.

With the merger, the company plans to go public and trade on Nasdaq. The combined company will operate as Katapult.

Under the terms of the deal, the combined entity will have an enterprise value of nearly $1bn.

Katapult provides e-commerce point-of-sale (POS) purchase options for nonprime consumers in the US.

Through its digital technology platform, the company offers consumers with flexible lease purchase option to facilitate the purchase of essential durable goods from the firm’s network of e-commerce retailers.

Katapult’s existing shareholders will be paid a total consideration of $833m

Under the terms of the proposed deal, FinServ will merge with Katapult at a pro forma combined enterprise value of about $1bn and equity value of $962m.

Cash proceeds from the deal are expected to fund up to $325m of cash consideration to Katapult’s shareholders and $50m of cash to the firm’s balance sheet.

The merger is expected to create a major e-commerce POS, lease purchase platform provider focused on the estimated $50bn of annual nonprime consumer durable goods e-commerce spends.

Under the terms of the transaction, the total consideration paid to Katapult’s existing shareholders will be $833m.

The present Katapult shareholders of the firm will own about 50% of the newly formed company, assuming no cash redemptions.

The merger transaction is expected to be completed during the first half of 2021.

FinServ CEO Lee Einbinder said: “After a comprehensive search process, in which we examined numerous business combination opportunities, Katapult emerged as the most impressive partner, exceeding all of our criteria for a successful transaction.

“Katapult has a differentiated and best-in-class technology platform, with significant opportunities to continue its growth trajectory by expanding its merchant and consumer base.

“We are pleased to help facilitate Katapult’s listing on Nasdaq, and excited to be partnering with their entire management team as they continue to lead Katapult’s expansion as a publicly listed company.”