Pico, a provider of technology services for financial markets, is going public through a deal with a special-purpose acquisition company that values the combined business at a $1.75bn equity value, the companies said.
The deal with FTAC Athena Acquisition could provide up to about $450m in gross proceeds, the companies said on 4 August. Founded in 2009, Pico says it offers financial-services trading cloud infrastructure.
The deal includes $200m in gross proceeds from a private placement in public equity from strategic and institutional investors, including Golden Gate Capital and Wellington Management, the companies said.
Pico could have up to $426m in cash after the deal closes, the companies said. Existing Pico shareholders, including current investors and employees, are expected to keep a roughly 72% stake in the combined business, they added.
Jarrod Yuster, Pico’s founder, chairman and co-chief executive, and Frank Troise, co-CEO, would continue to lead the company, the companies said.
The companies said they expect the deal to close in late 2021.
Spacs, shell companies that raise money with the sole purpose of looking for a target to merge with and take public, have exploded in popularity as companies seek alternatives to a traditional initial public offering. Such ventures typically have two years to find a target.
Write to Dave Sebastian at [email protected]wsj.com
This article was published by Dow Jones Newswires