Paysafe Group Holdings will go public through a merger with a Bill Foley-backed blank checking company that values the online payments firm at around $ 9 billion, including debt.
Paysafe is a London based payment service provider offering services under the Paysafe brand and through other brands operating under its umbrella, including NETELLER and Skrill. The company’s e-wallets and other payment products are widely used in the gaming industry.
Paysafe agreed to merge with Special Purpose Acquisition Company (SPAC) Foley Trasimene Acquisition Corp II. The transaction is expected to close in the first half of 2021. When this happens, Paysafe will be listed on the NASDAQ under the ticker symbol ‘PSFE’, news emerged Monday.
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Mr. Foley said that the payments giant has been at the top of its list of merger targets because it has different scalable businesses and is in an excellent position.
Paysafe CEO Philip McHugh said the company plans to expand your digital wallet portfolio acquiring multiple players in this highly competitive space, as well as consolidating in the nascent but growing US sports betting market, Mr. McHugh will retain his position following the merger of the company with Foley Trasimene.
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A return from the stock market
The recently announced merger will mark a stock market return for Paysafe, which was delisted from the London Stock Exchange in December 2017 after acquisitions firms Blackstone Group and CVC Capital Partners acquired the company earlier that year.
Reports emerged in the fall of 2019 that Blackstone and CVC were in the midst of preparations to list Paysafe and that the payment processing company could be worth more than $ 10 billion, including debt, in a possible initial public offering.
In November, a new round of listing reports suggested that Paysafe backers discussions with potential advisers had restarted on the possibility of taking the company public, either through an IPO or through a merger with a blank check company.
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CVC and Blackstone will be Paysafe’s largest investors after their merger and planned listing of SPAC. Blackstone Senior Chief Executive Officer Martin Brand said that retaining most of his investment would allow the company to buy benefit from Paysafe’s expected strong performance.
The SPAC mergers have gripped public markets this year as one of the hottest trends of 2020. Executives see a combination with blank check companies as a quick way to get their own businesses to market with a potentially higher fundraising and less complexity than the traditional OPV process.
And fintech companies like Paysafe appear to be the next booming SPAC market, as more people have been shopping online during the Covid-19 pandemic and making more payments online.
Paysafe is the latest payments company to go public through a combination of SPAC after Paya and Billtrust They will announce and complete similar deals earlier this year.
It should be noted that the SPAC trend has also by storm in the online gaming industry. Three US-based digital gaming and betting companies have announced SPAC deals in recent months, being DraftKings, Golden Nugget Online Gaming, and Rush Street Interactive.