Online payments company Paysafe to merge with SPAC Foley Trasimene

Paysafe SPAC merger : UK-based online payments company Paysafe Group is set to go public by merging with Foley Trasimene Acquisition Corp. II in a deal that values the former at around $9 billion.

The special purpose acquisition company (SPAC) is backed by US businessman William P. Foley, II (Bill Foley).

Following the completion of the deal, the newly combined company will operate as Paysafe with an intention to trade on the New York Stock Exchange (NYSE) under the PSFE symbol.

Paysafe is said to enable businesses and consumers to seamlessly connect and transact using its payment processing, digital wallet, and online cash solutions.

The online payments company had an annualized transactional volume of more than $98 billion in 2019. It has a workforce of nearly 3,000 employees located across more than 12 locations across the world.

Paysafe connects businesses and consumers across 70 types of payments in more than 40 currencies.

Bill Foley – Founder and Chairman of Foley Trasimene, commenting on the Paysafe SPAC merger, said: “Paysafe delivers a unique value proposition in large and high-growth markets, such as gaming and e-commerce, enabling the company to generate strong organic revenue growth and margin expansion.

“With a proven strategy and an experienced management team and our newly formed partnership, we believe Paysafe has significant long-term growth potential.”

Paysafe SPAC merger – Online payments company Paysafe to merge with SPAC Foley Trasimene

Financial details of Paysafe SPAC merger

The cash component of the deal will be financed by Foley Trasimene’s cash in trust, $150 million in proceeds through the forward purchase agreement with Cannae Holdings, along with a private placement of $2 billion from multiple institutional and private investors.

The private placement includes an investment of $500 million from Fidelity National Title Insurance, Chicago Title Insurance, Commonwealth Land Title Insurance, and Fidelity & Guaranty Life Insurance, and a $350 million investment from Cannae Holdings, Inc.

Other institutional investors are Third Point, Hedosophia, Suvretta Capital Management, and the Federated Hermes Kaufmann Funds. The remainder of the consideration will consist of equity in the combined firm.

Existing equity holders of Paysafe, which include Blackstone, CVC and management, will continue to be the largest investors in the online payments company.

Commenting on the Paysafe SPAC merger, Philip McHugh – CEO of Paysafe said: “Today’s announcement begins an exciting new chapter in our company’s history and we’re excited about the partnership with Foley Trasimene, Blackstone and CVC.

“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.”

The closing of the deal will be subject to Foley Trasimene’s shareholders’ approval, regulatory approvals, and other customary conditions, following which, it is expected to occur in the first half of 2021.