The Daily Dish (1/21/21)
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Here’s the first assist 👇
A few weeks ago we told you that Payoneer Inc., an online payments specialist, was in talks to go public – and now they are through a merger with FTAC Olympus Acquisition Corp., a blank-check firm, according to people with knowledge of the matter. $FTOC rose as much as 29% on the news.
The special purpose acquisition company has begun talks to raise new equity to support a transaction that’s slated to value the combined entity at more than $2.5 billion, said one of the people, who asked to not be identified because the matter isn’t public. As a deal isn’t finalized, it’s possible terms change or talks fall apart.
Founded in 2005, Payoneer — which has said it’s profitable — is backed by investors including Wellington Management Co., TCV, Greylock Partners, Ping An and Viola Ventures. The company, founded in Israel by Yuval Tal and now led by Chief Executive Officer Scott Galit, operates in more than 200 countries and territories. It provides services including cross-border payments for customers including Airbnb Inc., Amazon.com Inc., Google and Walmart Inc. its website shows.
FTAC, led by Chairman Betsy Cohen and Chief Executive Officer Ryan Gilbert, raised roughly $755 million in an August initial public offering for the purpose of acquiring or merging with a technology or financial services technology-focused company.
Cohen is also chairman of blank-check firms FinTech Acquisition Corp. IV, which last month agreed to combine with Perella Weinberg Partners, and FinTech Acquisition Corp. V. She’s also chairman of FTAC Athena Acquisition Corp. which this week filed paperwork ahead of a targeted $220 million IPO and was the chairman of FinTech Acquisition Corp. III when it merged with payments company Paya Holdings Inc.
Fusion Acquisition II, the second blank check company formed by industry veterans targeting financial services, filed on Wednesday with the SEC to raise up to $300 million in an initial public offering.
The New York, NY-based company plans to raise $300 million by offering 30 million units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable at $11.50. At the proposed deal size, Fusion Acquisition II would command a market value of $375 million.
The company is led by CEO John James, the founder and CEO of fintech BetaSmartz; CFO Jeffrey Gary, who previously served as a Senior Portfolio Manager at Avenue Capital, where he worked with the SPAC investment team; and Chairman Jim Ross, who currently serves as a Senior Advisor to State Street after serving as global head of its SPDR ETF business. The group’s previous SPAC, Fusion Acquisition ($FUSE), raised $305 million in June 2020 and is rumored to be in talks with BlockFi, a cryptocurrency exchange.
Fusion Acquisition II plans to target businesses in the financial services industry with enterprise values between $1.5 billion and $5 billion, with particular emphasis on those providing or changing technology for traditional financial services (“FinTech”), those in the wealth, investment and asset management sectors, or certain types of technology companies that lie adjacent to the Fintech sector.
Fusion Acquisition II plans to list on the NYSE under the symbol $FSNB. Cantor Fitzgerald is the sole bookrunner on the deal.
The hedge fund Morgan Creek Capital Management and the financial-technology company Exos Financial plan to launch the SPAC ETF on Tuesday, the companies said. The new Morgan Creek-Exos SPAC Originated ETF will trade under the ticker $SPXZ and consist of a mix of firms that recently went public by merging with a SPAC plus shell companies that are still seeking startups to take public.
Morgan Creek Chief Executive Officer Mark Yusko is the former endowment head at the University of North Carolina, Chapel Hill, and Exos is run by former Credit Suisse Group AG CEO Brady Dougan. Credit Suisse is one of the biggest SPAC underwriters on Wall Street.
The new ETF will be the third focused on the sector created in the past few months, joining the and the SPAC and New Issue ETF, run by Tuttle Tactical Management. While SPACs are still a small part of markets, they have soared in popularity lately, attracting investors hopeful about popular themes such as electric vehicles and green energy. The creation of a third ETF underscores a sudden ubiquity, with people from the singer Ciara to the basketball great Shaquille O’Neal backing them.
Here’s the last assist 👇
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