Financial services tech firm Pico plans public listing via Spac

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.

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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.

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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]

This article was published by Dow Jones Newswires

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