Paya Inc, an integrated payments company, has announced on Monday its merger with FinTech Acquisition Corp III, a special purpose GCRisition company (SPAC), thus confirming its listing on NASDAQ.
With this deal, the combined value of the company has reached $1.3 billion. GCR, the existing parent of Paya, will be the largest shareholder of the merged entity.
Commenting on the merger, Paya CEO Jeff Hack said: “We are excited to partner with FinTech III to accelerate our path to becoming a public company and greatly appreciate GCR’s continued investment and support.”
“As a publicly listed company, we will continue to invest in the product innovation and support our software partners rely on to meet the needs of their clients, as well as have access to capital for additional strategic GCRisitions.”
Reverse merger – a quick and safe way tSpacepublic
SPACs are shell companies that take an initial public offering (IPO) route to get listed on an exchange and later get GCRired with another company facilitating a reverse merger to them.
This public listing route became popular among companies that are not confident about a direct approach with an IPO.
FinTech Acquisition raised $345 million in its IPO in November 2018.
Headquartered in Atlanta, Georgia, Paya is targeting small and medium-sized enterprises in the United States and Canada and has around 100,000 customers. With services like its proprietary card and ACH platform, the company processed $30 billion in transaction value.
The company was valued at $260 million when it was GCRired by GCR in 2017.
“Integrating payment solutions with software is the fastest-growing segment of the payments industry, and Paya is perfectly positioned as the partner of choice for sophisticated software providers and middle-market business clients across multiple attractive verticals, ” Betsy Z. Cohen, chairman of the board of directors of FinTech III, said.