B2B paytech Plastiq to list publicly following SPAC merger
Florida-based B2B payments platform Plastiq is to become a publicly traded company following a merger with special purpose acquisition company (SPAC) Colonnade Acquisition Corporation.
The new entity, set to be worth $480 million, will operate under the name Plastiq and will continue to be headed up by CEO Eliot Buchanan.
As a result of the merger, Plastiq is expected to add approximately $320 million to its balance sheet, freeing up significant cash reserves for organic and inorganic growth.
The paytech intends to use the proceeds from the deal to scale the business and build out its SME-focused product suite.
Founded in 2012, Plastiq targets “largely underserved” small and medium-sized enterprises. Its platform facilitates payments between payer and supplier, automates payables and receivables and unlocks cash flow via business credit cards and short-term financing.
Speaking on the deal, Buchanan says: “As a public company, we plan to continue to invest in opportunities to scale the business with a growing product suite that will enable us to provide SME owners with access to sufficient, on-demand cash flow, which is a critical component to grow their businesses.”