Shares of financial services firm Payoneer tumble during PSPC debut

Shares of online financial services firm Payoneer Global Inc., a company often compared to PayPal Holdings Inc., fell today in their Nasdaq debut after completing a special acquisition company merger with FTAC Olympus Acquisition Corp.

The $ 3.3 billion deal, announced in February, called for Payoneer to receive $ 300 million from investors including Wellington Management, Dragoneer Investment Group, Fidelity Management & Research and Franklin Templeton. As CNBC notes, with shares down 1.5% as a result of the PSPC merger, the combined company now has a market cap of just over $ 1 billion.

Founded in 2005, Payoneer offers a range of online financial services including online money transfer and digital payment services with a cross-border payment platform designed to enable businesses, online sellers and freelancers to pay and get paid around the world. While PayPal is best known for online payments through e-commerce sites, Payoneer has become a popular option for paying freelancers and remote workers. However, both companies offer a similar range of services.

Payoneer processed $ 44.4 billion in transactions in 2020 and before the PSPC merger, said it expects $ 432 million in revenue in 2021, up from $ 94.7 million last year. Notable clients include Google LLC, Airbnb Inc., Upwork Inc., Shutterstock Inc., and Getty Images Inc.

“Now, with the public currency, we are able to make bolder investments, make more acquisitions, and move faster to do bigger things for more customers and more places in the world.” Payoneer CEO Scott Galit said in an interview.

The somewhat weak start of the Payoneer SPAC merger is somewhat surprising given the strong performance of other companies that have gone public using the same method. Fintech company SoFI went public through a SPAC on June 1 and saw its shares jump 12% on their first trading day. More recently, genetic testing firm 23andMe Holding Co. went public and saw its shares increase by 21% on its first day as a listed merged company.

However, not all of the PSPCs in recent months have been successful. Shares of shopping website provider Squarespace Inc. fell when they debuted on the New York Stock Exchange on May 19.

Whether there is some exhaustion in the PSPC merger market is debatable – Barron’s noted in April that PSPCs have fallen out of favor and more companies are still lining up to use them, such as the lidar company Quanergy Systems Inc. which announced the June 22 SPAC agreement for $ 1.1.

By entering its SPAC list, Payoneer had raised $ 270 million in venture capital from investors that included Susquehanna Growth Equity and CBC Capital.

Photo: Payoneer

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