Paysafe Goes Public Again In SPAC Deal: What Investors Should Know

Paysafe Goes Public Again In SPAC Deal: What Investors Should Know

One of the largest SPAC deals to date was announced Monday, with online payments company Paysafe going public.

The Transaction: Paysafe is going public via SPAC Foley Transimene Acquisition Corp II BFT. The deal values Paysafe at an enterprise value of $9 billion. The deal includes a PIPE of $2 billion, with Fidelity among the investors in the deal.

The new company will trade as "PSFE" on the NYSE.

Bill Foley, the chairman of the SPAC, will become the chairman of Paysafe's board of directors. He's the chairman of Fidelity and former CEO of the company.

Foley has a strong history of value creation, having led five separate multibillion-dollar public market platforms that completed over 100 acquisitions.

About Paysafe: Paysafe is a leading global payments provider focused on digital commerce and iGaming transactions.

Paysafe holds the No. 2 market share position in the global digital wallet market. The company’s digital wallet is in over 120 markets and has customers like DraftKings Inc DKNG and William Hill. The company has 3.8 million active users for its digital wallet segment.

Paysafe is No. 1 in the iGaming eCash network segment. Customers for this segment include Fortnite, Twitch, and Spotify Technologies SPOT.

In the independent merchant market, Paysafe holds the No. 4 market share position and helps with POS and e-commerce for small businesses.

Paysafe also lists Roblox NYSE RBLX and YouTube, owned by Alphabet Inc GOOG GOOGL as customers.

Paysafe was taken private by Blackstone and CVC in 2017 in a $4.7-billion deal.

Financials: The company estimates that its 2021 payment volume will hit $103 billion. Revenue of $1.5 billion is estimated for fiscal 2021 by the company. Paysafe said revenue will grow at a compounded annual growth rate of 11% from 2020 to 2023.

The digital wallet segment is expected to have $441 million in revenue for 2021 with a 1.9% take on transactions. This represents 29% of the company’s 2021 revenue.

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