Paysafe goes public via Spac merger
London-based online payments company Paysafe is set to begin trading on US public markets after merging with a blank-check company.
The special purpose acquisition company (Spac), Foley Trasimene Acquisition II Corp, is owned by billionaire business and sports executive, Bill Foley.
Shares of Foley Trasimene Acquisition Corp. II moved 5.77% higher Monday to $15.39, giving it a valuation of roughly $2.8 billion at the close.
According to CNBC, Foley, who set up the Spac, announced in December that it was targeting Paysafe in a deal valuing the firm at about $9 billion, including debt.
“Paysafe … is ubiquitous. It’s just everywhere in terms of the gaming world and digital wallets, e-cash solutions,” he said in a “Mad Money” interview. “We’ll actually go public tomorrow as we start trading on the New York Stock Exchange.”
Foley is the chairman of Fidelity National Financial and the majority owner of the Vegas Golden Knights.
The Securities and Exchange Commission (SEC) filings tied to the Spac deal provides a background of its volumes and userbase. The company states that it had processed $98 billion in payments volume in 2019, and at the end of 2020 had 15 million active users in more than 120 countries, with more than 250,000 small and medium-sized businesses (SMBs) across North America and Europe, with 70 alternative payment methods.
Roughly 75% of its revenues came from e-commerce and integrated commerce solutions, according to the filing. It notes that “e-commerce and brick and mortar merchants are continuing to demand partnering with highly sophisticated payments providers with a broad range of solutions.”
It also shows that Paysafe is targeting $103 billion in payments volume in the current year, with an estimated top line of about $1.5 billion in fiscal year 2021. Volume growth has been consistent through the last few years at about 12%, according to the documents. It predicts that it will accelerate from the 2020 to 2023 timeframe to a compound annual growth rate of about 15%. It adds that the organic revenue growth will be about 11% on a compound annual growth rate through to 2023.
Paysafe, which includes brands such as Income Access, Paysafecard, Skrill and Neteller, is backed by Blackstone and CVC.
Companies use Paysafe products to handle credit card, cash and direct-debit transactions digitally. Prepaid cards and digital wallets are other offerings.