A relatively novel method for private companies to go public gained momentum in the payments industry Monday with the announcement that London-based processor Paysafe Group Holdings Ltd. will be acquired by a group put together by Las Vegas-based Foley Trasimene Acquisition Corp. in a deal valued at approximately $9 billion.
The Paysafe SPAC is at least the fifth that has taken place in the payments business in the past three years, estimates Peter Michaud, director of consulting for The Strawhecker Group, an Omaha-based consulting and research firm. The attraction for firms is “speed to market,” he says, as executives can bypass the regulatory workload imposed on firms looking to go public via an initial public offering.
“It eliminates a lot of legwork,” Michaud says, allowing firms to take advantage of a market where valuations are rising. “People are trying to get into the market as quickly as possible,” he adds.