Fintech Acquisition Corp. III (FTAC) Shareholders Approve Paya Deal

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Fintech Acquisition Corp. III (FTAC) Shareholders Approve Paya Deal

Oct 15, 2020 INTEL by Nicholas Alan Clayton

Fintech Acquisition Corp. III (NASDAQ:FTAC) announced that it secured shareholder approval for its $1.3 billion business combination with payments processor Paya during a special meeting held earlier today.

Importantly, only 5,696,643 shares opted to redeem, taking an estimated $10.25 per share from the trust. Fintech III shares closed trading today at $11 even. This amount of redemptions will not pose a risk to the transaction, which required just that Fintech III maintain $200 million in its trust and $400 million in cash available overall in order to close.

Before redemptions, Fintech III had about $353.6 million in its trust and supported the deal with a $200 million PIPE and a $50 million sponsor co-investment.

All measures on Fintech III’s ballot, including formally changing the company’s name to Paya Holdings and appointing its Board, passed overwhelmingly with no measure receiving more than 8% of shares dissenting. In total, shareholders representing more than 79% of outstanding stock took part, so Fintech III did not face the voter turnout issues that complicated some SPAC closing processes in the past month.

Fintech III announced its proposed combination with Paya on August 3 and marks a quick close, with a 2+ month turnaround time, for a team that notched well-received deals for CardConnect and International Money Express with Fintechs I and II.

It upped its ante August 26, raising a total of $754.7 million in the IPO of its latest SPAC, FTAC Olympus Acquisition Corp. (NASDAQ:FTOC). This seasoned team led by Chairperson Betsy Z. Cohen and President, CEO and Director Ryan M. Gilbert now has the ammunition to hunt even bigger game in the fintech space.

ADVISORS

  • Evercore is acting as exclusive capital markets and financial advisor to Paya.
  • William Blair is acting as financial advisor to Paya.
  • Kirkland & Ellis LLP is acting as legal counsel to Paya.
  • Cantor Fitzgerald & Co. and Northland Capital Markets are acting as capital markets advisors to FinTech III.
  • Ledgewood PC is acting as legal counsel to FinTech III.
  • Morgan Stanley, Evercore and Cantor Fitzgerald & Co. are acting as private placement agents.

 

ByNicholas Alan Clayton