A leader in technology for financial markets announced going public via a SPAC merger Wednesday.
The SPAC Deal: Pico announced a SPAC deal with FTAC Athena Acquisition Corp FTAA.
The deal values the company at a pro forma enterprise value of $1.4 billion. A fully funded $200 million PIPE includes investments by Golden Gate Capital, Wellington Management and Wells Fargo & Co WFC.
Public FTAA shareholders will own 14% of the company after the merger.
About Pico: Using a platform of cloud, data and analytics, Pico supports more than 400 financial institutions. Founded in 2009, Pico now offers services such as modernizing aging IT, regulatory overhead and personalization of data.
“We sit at the center of a complex ecosystem of major market participants, global market centers and technology partners,” Pico founder and co-CEO Jarrod Yuster said.
The company’s 400 customers include 24 of the top 25 banks, 36 top global exchanges, Bloomberg and market makers such as Virtu Financial Inc VIRT and Citadel.
Growth Ahead: One area of growth mentioned for the company is a plan to continue cross-selling items to its customers. The company offers several platforms and reports that 47% of customers use multiple products.
“Pico is at the frontier of modernizing the financial ecosystem by providing global connectivity and market insight solutions for its customers,” FTAC Athena Chairman Betsy Cohen said.
Bank and financial service customers spend 7% of their revenue on IT according to the company’s presentation, which is double the average of other sectors.
Pico added 37 new customers in 2020 and is focusing on areas like regional banks to gain new customers going forward.
The company also lists new products and acquisitions as areas of growth for Pico.
Financials: Pico had revenue of $157 million in fiscal 2020. The company sees revenue growing at an annual rate of 25% from fiscal 2020 to fiscal 2022.
International revenue is expected to make up 39% of fiscal 2021 revenue for Pico. The APAC region had compounded annual revenue growth of 106% from fiscal 2019 to fiscal 2021.
Price Action: FTAA shares are up 0.77% to $9.87 on Wednesday.
See also: Are SPACs a Good Investment?
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