Global payments provider Paysafe Group Holdings has agreed to a merger with Foley Trasimene Acquisition Corp., a transaction fueled through investments of more than $2 billion.
Through the merger, Trasimene expects to accelerate Paysafe's growth through operational improvements and the Trasimene merger-and-acquisition network and balance sheet. The pro-forma enterprise value for London-based Paysafe after the transaction is estimated at $9 billion.
Paysafe equity holders, including Blackstone, CVC and management, will remain the largest investors in the company. The transaction is expected to close in the first half of 2021.
Paysafe currently processes nearly $100 billion in payment volume, with more than 75% of its revenue coming from online and integrated services. It offers B2B and B2C payments through digital wallets, e-cash and processing solutions.
“Today’s announcement begins an exciting new chapter in our company’s history and we’re excited about the partnership with Foley Trasimene, Blackstone and CVC," Philip McHugh, CEO of Paysafe, said in a Monday press release.
"More than ever, businesses and consumers need to connect and seamlessly transact via digital commerce," McHugh added. "This transaction will allow us to accelerate our growth opportunities across the business, particularly in fast growth sectors such as iGaming where we are the payments partner of choice.”
Las Vegas-based Foley Trasimene is funding the cash component of the deal through $150 million in proceeds from the forward purchase agreement with Cannae Holdings Inc., as well as a $2 billion private placement from various institutional and private investors.
The $2 billion private placement includes a $500 million investment from Fidelity National Title Insurance Co., Chicago Title Insurance Co., Commonwealth Land Title Insurance Co. and Fidelity & Guaranty Life Insurance Co., and a $350 million investment from Cannae Holdings Inc. Other institutional investors include Third Point LLC, Suvretta Capital Management, Hedosophia and the Federated Hermes Kaufmann Funds.
“Upon the formation and initial listing of Foley Trasimene, our team initiated a diligent and thorough search process to source an appropriate partner, with the goal to announce a partnership prior to year end," William P. Foley II, founder and chairman of Foley Trasimene, said in the release. "We have reached this milestone with Paysafe as our ideal partner.”
Foley will serve as chairman of the board and McHugh will continue as CEO of the new combined company.
When the transaction closes after approval from Trasimene stockholders, the combined company will operate as Paysafe and list on the New York Stock Exchange under the symbol PSFE.
