Fusion Acquisition Corp. (FUSE.U), filed for a $250 million IPO last night, and will be focused on companies with an enterprise value of approximately $750 million to $3 billion and with a particular emphasis on companies in the FinTech sector.
The Fusion team will be led by Jim Ross, as non-Executive Chairman, and John James, as CEO. For those unfamiliar with Mr. Ross, he is currently a senior advisor to State Street, the financial services company, but he is best known for being the Chairman of the global SPDR exchange-traded fund (“SPDR ETF”). He is an ETF pioneer having helped bring the first Gold ETF to market (GLD), as well as SPY, which are probably the most recognizable ETFs. However, as his bio in the prospectus states, “Mr. Ross was also instrumental in creating, developing, and bringing to market many of the world’s first ETFs“.
As for Mr. James, Fusion’s CEO, he most recently founded BetaSmartz, a global financial technology business serving financial services organizations, in 2015, and has served as its chairman and chief executive officer since November 2015. Rounding out the team are Jeffrey Gary, who will be Fusion’s CFO, and the Directors, Kelly Driscoll and Ben Buettell. All of whom have significant financial services experience. Mr. Gary – portfolio manager at Avenue Capital and Blackrock, Ms. Driscoll – State Street; Mr. Buettell – Houlihan Lokey. So clearly, this team has financial services experience.
Looking at this SPAC’s structure, it’s a fairly standard structure we used to see quite frequently last year. That is, it’s a $250 million, 1/2 warrant, 18 months life SPAC, with a $7.0 million at-risk purchase of warrants at $1.00. No forward purchases, or indications of interest, just a straight-up SPAC. Plus, they have Cantor underwriting the deal (with Odeon Capital as co-manager) and Cantor tends to favor simpler structures without a lot of bells and whistles.
All told, this SPAC should price pretty easily. They have an experienced underwriter, and the terms feel like a good match for this first time team. Look for Fusion to price the week of June 22nd.
Summary of terms below:
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