![]() ![]() and Xavier Rolet, former CEO of the London Stock Exchange, who currently serves as a Director of Golden Falcon Acquisition Corp. ![]() Diamond Jr., former CEO of Barclays, who currently serves as Chairman of the Board of Concord Acquisition Corp. Cohen, former CEO of The Bancorp, Inc., who currently serves as Chairman of the Board of Fintech Acquisition Corps. Braunstein, former CFO of JPMorgan Chase, who currently serves as President and Chairman of the Board of Hudson Executive Investment Corp. Examples of prominent financial services industry professionals who form part of recently launched Fintech SPAC management teams include Douglas L. įrom the Fintech target company’s perspective, going public via a SPAC business combination offers a number of advantages over a traditional IPO, including a faster listing process thanks to the avoidance of lengthy roadshows with prospective investors certainty over valuation thanks to the target company’s ability to predetermine its valuation in direct negotiation with the SPAC sponsor prior to listing contractual flexibility thanks to the ability of the target company to directly negotiate SPAC merger agreement terms with the SPAC sponsor and an opportunity to enter the public markets in partnership with a SPAC management team that is composed of seasoned Fintech investors and well-known financial services industry professionals who can enhance the target company’s value and overall business prospects. V’s $250 million IPO, and Dutch Star Companies Two B.V.’s €110 million IPO. Other 2020 Fintech-related SPAC IPOs of note include SVF Investment Corp.’s planned $525 million IPO, FinTech Acquisition Corp. ![]() II’s $1.4 billion IPO, FTAC Olympus Acquisition Corp.’s $750 million IPO, Dragoneer Growth Opportunities Corp.’s $690 million IPO, and Far Peak Acquisition Corporation’s $550 million IPO. Among the largest Fintech-focused SPAC IPOs of 2020 were Foley Trasimene Acquisition Corp. Recognition of the Fintech sector’s potential from a public market standpoint resulted in the launch of over 30 Fintech-focused SPAC IPOs in 2020, with the majority initiated during the second half of the year. SPAC IPOS TARGETING FINTECH COMPANIESįintech-focused SPAC sponsors view the Fintech sector as ripe for SPAC business combinations as a result of the “deep supply” of privately held Fintech targets that are well positioned to be taken public, as well as the increased demand for Fintech-related products and services that has resulted from the COVID-19 pandemic. This article provides a brief overview of the rise of SPAC transactions in the Fintech sector in 2020. Technology is considered to be the dominant sector for SPAC transactions, and an increasing number of SPACs are being formed to combine specifically with target companies in the financial services technology (Fintech) sector. The volume of SPAC IPOs and related SPAC IBCs (collectively, SPAC transactions) skyrocketed in 2020 as a result of COVID-19 pandemic-related financial market uncertainty, as well as sponsor, investor and target company appetite for liquidity and exit opportunities. Often referred to as “blank check companies,” SPACs are publicly traded shell corporations that raise capital through an IPO of the SPAC (a SPAC IPO) in order to subsequently acquire and take public a separate privately held target company in what is commonly referred to as either a SPAC merger, a “De-SPAC” transaction or an initial business combination transaction (a SPAC IBC). Public listings through reverse mergers with special purpose acquisition companies (SPACs), commonly referred to as “backdoor listings,” have returned to the capital markets spotlight and are being utilized at record-breaking levels as an expedited alternative to traditional initial public offerings (IPOs). ![]()
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