UK-based integrated payments platform Paysafe Group and Foley Trasimene, a special purpose acquisition company, have inked a definitive agreement to merge.
The merger with the blank check firm values the payments group at an implied Pro-forma enterprise value of nearly $9bn.
The merged entity will be called Paysafe, which will be publicly traded on the New York Stock Exchange (NYSE).
The deal’s cash component will be financed by Foley Trasimene’s cash in trust, $150m from a forward purchase agreement with Canna Holdings and private placement.
The $2bn private placement was contributed by institutional and private investors.
Of this amount, $500m comes from Fidelity National Title Insurance, Chicago Title Insurance, Commonwealth Land Title Insurance and Fidelity & Guaranty Life Insurance.
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Investment firm Cannae Holdings invested $350m as part of this private placement.
Other investors include Third Point, Suvretta Capital Management, Hedosophia and the Federated Hermes Kaufmann Funds.
The remaining consideration will comprise equity in the consolidated business.
Paysafe’s existing equity holders, including Blackstone, CVC and management will remain the largest investors.
The deal is expected to complete in H1 2021, subject to Foley Trasimene shareholders’ and regulatory approvals.
Foley Trasimene founder and chairman William Foley II said: “Thanks to the hard work of our team, we have reached this milestone with Paysafe as our ideal partner.
“We believe we can further enhance Paysafe’s growth trajectory through accelerated operational transformation and M&A, enabled by our de-levered balance sheet.
“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.”
Paysafe CEO Philip McHugh said: “Today’s announcement begins an exciting new chapter in our company’s history and we are excited about the partnership with Foley Trasimene, Blackstone and CVC.
“This transaction will allow us to accelerate our growth opportunities across the business, particularly in fast-growing sectors such as iGaming where we are the payments partner of choice.”