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Fintech Payoneer Tackling $26 Trillion Market: What Investors Should Know About SPAC Deal

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Fintech Payoneer Tackling $26 Trillion Market: What Investors Should Know About SPAC Deal

Fintech company Payoneer is going public in a deal valuing the company at $3.3 billion.

The SPAC Deal: The SPAC merger for Payoneer with FTAC Olympus Acquisition Corp (NASDAQ: FTOC) includes a $300 million PIPE with financial backing from Dragoneer, Fidelity, Franklin Templeton and T. Rowe Price.

Current FTAC Olympus Acquisition shareholders will own 19.2% of the company after the merger is complete.

Bloomberg first reported a deal was in the works back in January.

About Payoneer: Payoneer powers payments for freelancers, sellers, gig workers, manufacturers, banks, suppliers and buyers.

Payoneer operates in over 190 countries worldwide and works with nine of the top 20 most valuable companies in the world offering digital payment solutions, according to the filing.

Payoneer has grown its business offerings to include marketplace payments, business to business accounts payable and accounts receivable, merchant services, working capital and risk and compliance services.

The CEO of Payoneer is Scott Gallt, who served as a Senior Vice President for both Mastercard Inc (NYSE: MA) and First Data.

FTAC Olympus counts Betsy Cohen and Ryan Gilbert as the management who have experience with The Bancorp and Square (NYSE: SQ), respectively.

Related Link: 10 SPACs Trading Under $11 For Investors To Consider In 2021

Growth Ahead: The U.S. global e-commerce market is $9 billion and globally sits at $26 trillion, according to the filing. Payoneer is working on capitalizing on the global growth of e-commerce and digital payments.

Internet users outside of North America and Europe represent 78% of the global internet users.

Payoneer offers a two-sided network connecting and monetizing both sides of digital payments.

Financials: Payoneer had payment volume of $44 billion in fiscal 2020, representing year-over-year growth of 140%. Revenue in fiscal 2020 was $345 million. The company had over $1 billion of volume for its U.S. segment in the United States.

Guidance from the presentation calls for revenue of $432 million and $540 million in fiscal 2021 and fiscal 2022, respectively. Volume growth is seen growing to $64 billion in fiscal 2021 and $85 billion in fiscal 2022.

Payoneer is calling for long-term revenue growth of 20% and 20% EBITDA margins.

FTOC Price Action: Shares of FTAC Olympus are up 11% to $14.10 at the time of publication.

Disclosure: The author has a long position in shares of FTOC.

 

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