Plastiq intends to use the transaction proceeds to further scale the business with a growing product suite that empowers SMBs with access to democratized financial services that boost cash flow
US-based B2B payment platform Plastiq is set to merge with Colonnade Acquisition Corp. II, a special purpose acquisition company (SPAC), to become a publicly traded company.
Under the terms of the merger agreement, Plastiq equity holders will transfer their entire investments in Plastiq into the combined company.
The combined company will have an implied enterprise value of around $480m at closing and will continue as a publicly-listed entity.
Plastiq is enabled to add around $320m to its balance sheet, to further scale its operations with a suite of products that empower SMBs.
The merger has been unanimously approved by the boards of both Plastiq and Colonnade.
It is expected to complete in the first quarter of 2023, subject to certain closing conditions, including approval by the Colonnade shareholders, and other regulatory approvals.
Upon closing, the combined company will operate as Plastiq, and its shares will be traded under a new ticker symbol.
Plastiq founder and CEO Eliot Buchanan, and the current management team will continue to lead the combined company after the transaction is closed.
Eliot Buchanan said: “We are excited about this important milestone of entering the public markets through a combination with Colonnade. For too long, SMBs have been neglected from financial services.
“As a public company, we plan to continue to invest in opportunities to scale the business with a growing product suite that enables us to provide SMB owners with access to sufficient, on-demand cash flow, which is a critical component to grow their businesses.”
Established in 2012, Plastiq is engaged in providing small and midsize businesses (SMBs) with online bill payments, payment acceptance, and instant access to working capital.
It aims to empower SMBs with choice in payments, automated payables and receivables, cash flow from business credit cards and instant short-term financing.
The company integrates with multiple enterprise resource planning systems (ERPs) and provides a suite of APIs to help embed B2B payment options into their customer experience.
White & Case served as legal counsel to Colonnade, while Latham & Watkins served as legal counsel to Plastiq on the transaction.
Colonnade Acquisition Corp. II chairman Joseph Sambuco said: “We are pleased to partner with Eliot and the broader leadership team at Plastiq as we remain deeply impressed by their vision and passion in bringing SMBs into the modern era of B2B payments through their unparalleled product suite.
“Moreover, we believe Plastiq has a significant opportunity to penetrate its vast $9 trillion total addressable market of SMB payments. We are very excited about this transaction and are encouraged by Plastiq’s growth, highly scalable business model, expanding product suite and efficient go-to-market approach.”