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Payoneer to Go Public in $3.3 Billion FTAC Olympus SPAC Deal

Payoneer says the transaction with FTAC Olympus Acquisition will close during the first half of the year.

Online payment company Payoneer said Wednesday it will go public through a merger with FTAC Olympus Acquisition (FTOC), a special purpose acquisition company run by banking entrepreneur Betsy Cohen, in a $3.3 billion deal.

Shares of the Philadelphia-based FTAC Olympus Acquisition were climbing 9% to $13.89 in trading Wednesday.

The transaction, which was approved by the boards of both companies, is expected to close during the first half of the year.

The combined companies are expected to have $563 million in cash. 

As part of the transaction, Payoneer will receive $300 million from investors including Wellington Management, Dragoneer Investment Group, Fidelity and Franklin Templeton.

The new entity will be renamed Payoneer Global and existing Payoneer management will continue to lead company.

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Following its public debut, the company plans to expand its offerings that allow businesses to transact with each other overseas, an area that’s long been dominated by pricey wire payments and paper checks, Bloomberg noted.

Founded in New York City in 2005, Payoneer provides businesses and professionals with a cross-border payments platform and has over four million customers, according to Reuters. 

Payoneer said it is profitable and expects to collect $432 million in revenue in 2021. The firm processed more than $44 billion in payments last year.

"Payoneer is at the forefront of the rapid, global shift to digital commerce across all sectors,"  said Cohen, who founded Jefferson Bank and Bancorp. "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."

FTAC Olympus, a so-called blank check company raised $750 million in its IPO last year.

In December, Cohen’s FinTech Acquisition Corporation IV took boutique investment bank Perella Weinberg Partners public in a $975 million deal.

SPAC IPOs have surged recently, with 100 being reported so far this year, according to SPAC Insider. There were 248 such transactions in 2020, compared with 59 in 2019.