- Payments startup Payoneer is the latest late-stage tech company set to go public via a blank-check company merger.
- Founded in 2005, New York-headquartered Payoneer is set for a $3.3 billion valuation on the Nasdaq.
- Payoneer will go public in a merger with former Bancorp CEO Betsy Cohen’s FTAC Olympus Acquisition Corp.
- Visit the Business section of Insider for more stories.
Payments startup Payoneer plans to join the SPAC frenzy and is set to go public via a merger with a blank-check company.
The New York-headquartered firm will merge with former Bancorp CEO Betsy Cohen’s FTAC Olympus Acquisition Corp (FTAC).
Founded in 2005, Payoneer is set for a $3.3 billion valuation on the NASDAQ with $300 million in private investment in public equity (PIPE) commitment from investors including Dragoneer Investment Group, Fidelity Management & Research, and Franklin Templeton.
Payoneer, which provides payments solutions in more than 190 countries, is the latest startup to join the SPAC trend. Special purpose acquisition companies raise funding from investors with the intention of taking a private company public via a merger. In 2020, SPACs raised $73 billion — more than the rest of the 2010s combined.
“We’ve been in a position to go public for quite some time,” Scott Galit, Payoneer’s CEO told Insider in an interview. “We thought more actively about it last year but Covid-19 caused us to pause. We’re fortunate to have had multiple options available not just of ways to go public but also with whom we went public and Betsy and her team stood out.”
Galit said that he has known Betsy Cohen for more than a decade and was in talks from late 2020 about the move. Demand for the deal from private investors was strong. Payoneer initially hoped to bring in $200 million in PIPE but demand was such that the company raised it to $300 million, Galit said.
“We’re happy to move toward public markets with a large amount of capital to work with to deliver value for customers. This wasn’t so much to do with the buzzy-ness of SPACs, it’s in spite of that not because of it,” he said.
The company was previously backed by investors such as TCV, Susquehanna Growth Equity (SGE), Viola Ventures, Wellington Management, Nyca Partners, and Temasek. It will now be renamed as Payoneer Global.
“Payoneer is at the forefront of the rapid, global shift to digital commerce across all sectors,” Cohen said in a release. “Its innovative and unique high-tech, high-touch platform positions Payoneer at the epicenter of some of the most powerful and enduring trends driving global commerce today.”
The fresh funds will be used by Payoneer to pursue its growth strategy which Galit said was boosted by the upswing in digital commerce driven by the pandemic. “We’re focusing on marketplace ecosystems because we see a lot of opportunity there,” he added. “E-commerce is growing and that’s a great leg on the stool for digital business globally.”
In addition, Galit said that future acquisitions were an exciting opportunity for Payoneer as a public company. “We had a 140% volume increase in 2020, but this is a market worth trillions of dollars so we’re still just scratching the surface.”