Online payment firm Payoneer to go public through $3.3bn merger with FTAC Olympus
Payoneer, an online payment startup, has agreed to merge with FTAC Olympus Acquisition (FTOC), a special purpose acquisition company, in a deal valuing the combined firm at around $3.3 billion.
The combined company will continue to operate as Payoneer with a public listing in the US.
FTAC Olympus Acquisition is led by banking entrepreneur Betsy Z. Cohen, who is its board chairman, and Ryan M. Gilbert, who is its President and CEO. The SPAC had been created for acquiring or merging with one or more technology and financial services technology firms.
Payoneer’s services include cross-border payments, tax solutions, working capital, risk management, and payment orchestration for merchants.
The company is said to have built an ecosystem that connects marketplaces, sellers, gig workers, freelancers, banks, manufacturers, suppliers, buyers and others into an integrated global platform.
Payoneer’s platform provides a global, multi-currency account to businesses across the world. It enables businesses to pay and get paid globally.
Betsy Z. Cohen said: “Payoneer is at the forefront of the rapid, global shift to digital commerce across all sectors. Its innovative and unique high-tech, high-touch platform positions Payoneer at the epicenter of some of the most powerful and enduring trends driving global commerce today.
“Its proven ability to facilitate the overall growth of e-commerce through capabilities such as B2B payment digitization, global risk and compliance infrastructure, and the enablement for SMBs to rapidly grow and scale sets Payoneer apart.”
The fintech company has been backed by investments from TCV, Susquehanna Growth Equity (SGE), Wellington Management, Viola Ventures, Temasek, Nyca Partners, and others.
The cash component of the considerable to be paid to Payoneer’s shareholders is expected to be funded by the cash in trust of FTAC Olympus Acquisition and also by a private placement of $300 million.
The PIPE investors include existing investor Wellington Management, Dragoneer Investment Group, Franklin Templeton, Fidelity Management & Research, funds and accounts advised by T. Rowe Price Associates, certain funds managed by Millennium Management, and Winslow Capital Management.
Scott Galit – CEO of Payoneer said: “Technology is transforming commerce globally, bringing down borders and making it possible for entrepreneurs from all over the world to build a digital business.
“This new way of doing business requires a global financial platform built for the digital age.
“Payoneer’s purpose-built platform provides global connectivity with localized capabilities, layered on top of a robust and scalable compliance, risk and regulatory infrastructure.”
The deal is expected to be wrapped up during the first half of this year, subject to approval by the SPAC’s shareholders, receipt of required approvals under applicable money transmitter laws, and other customary closing conditions.