Post-merger, the UK-based online payments company will be listed on the New York Stock Exchange
Paysafe Group has agreed to merge with Foley Trasimene, a special purpose acquisition company (SPAC), in a deal that values the UK-based online payments solutions provider at about $9bn.
The deal will enable Paysafe to become a publicly-traded entity. The newly combined firm, post-merger, which will operate as Paysafe and will trade on the New York Stock Exchange (NYSE).
The company’s payment processing, digital wallet, and online cash solutions are said to help businesses and consumers to connect and transact seamlessly.
Through its integrated platform, the company claims to connect businesses and consumers across 70 payment modes in over 40 currencies across the world.
In 2019, the payments firm had an annualised transactional volume of over $98bn. It employs around 3,000 people working across more than 12 locations in different parts of the world.
Paysafe CEO Philip McHugh said: “Today, more than ever, businesses and consumers need to connect and seamlessly transact via digital commerce. This is what Paysafe does best through our industry-leading payment processing, digital wallet, and online cash solutions.
“This transaction will allow us to accelerate our growth opportunities across the business, particularly in fast growth sectors such as iGaming where we are the payments partner of choice.”
McHugh will continue to lead the enlarged company after the closing of the merger.
Foley Trasimene plans to fund the cash part of the transaction through its cash in trust.
The deal will see total private placement of $2bn
In conjunction with the deal, Cannae Holdings invested $350m in the merger deal as part of a private placement. This will be in addition to a $150m forward purchase agreement with Foley Trasimene.
Apart from Cannae, Fidelity National Title Insurance, Commonwealth Land Title Insurance, Fidelity & Guaranty Life Insurance, and Chicago Title Insurance will be investing $500m.
Overall, the deal will see a total private placement of $2bn from various institutional and private investors.
Paysafe’s existing equity holders such as Blackstone, CVC, and management, will continue to be its largest investors, post-merger.
Foley Trasimene founder and chairman William P. Foley, II (Bill Foley) said: “Upon the formation and initial listing of Foley Trasimene, our team initiated a diligent and thorough search process to source an appropriate partner, with the goal to announce a partnership prior to year end.
“Thanks to the hard work of our team, we have reached this milestone with Paysafe as our ideal partner. Philip and the entire management team have positioned Paysafe to be a leading global payments platform.
“We believe we can further enhance Paysafe’s growth trajectory through accelerated operational transformation and M&A, enabled by our de-levered balance sheet.”
The merger, which will be subject to the SPAC’s shareholders’ approval, receipt of regulatory approvals, and meeting of other customary conditions, is anticipated to close in the first half of next year.