Fintech News: FTOC Stock Surges on Payoneer SPAC Merger Approval

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Payoneer is going public thanks to a merger with special purpose acquisition company (SPAC) FTAC Olympus Acquisition (NASDAQ:FTOC) and FTOC stock is on the move Wednesday.

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The deal will have Payoneey merging with FTAC Olympus Acquisition and the new company will adopt the name Payoneer Global Inc. The combined company will have an estimated enterprise value of $3.3 billion.

FTAC Olympus Acquisition is funding the deal with its cash on hand, as well as a $300 million private investment in public equity (PIPE). This will cover the cost paid to equity holders of Payoneer and will provide the combined company with $563 million in cash.

Scott Galit, CEO of Payoneer, said this about the fintech news boosting FTOC sock up today.

“Technology is transforming commerce globally, bringing down borders and making it possible for entrepreneurs from all over the world to build a digital business. This new way of doing business requires a global financial platform built for the digital age.”

Payoneer notes that the SPAC merger has the unanimous support of both companies’ Boards of Directors. What it still needs is approval from shareholders of FTOC stock and regulators. The current expectation is for the deal to close during the first half of 2021.

News that Payoneer and FTAC Olympus Acquisition leaked well ahead of this announcement. Rumors about the deal started popping up in January ahead of any official word about a SPAC merger.

FTOC stock was up 9.4% as of noon Wednesday.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.