(Reuters) – Paya Inc is nearing a deal to merge blank-check acquisition firm FinTech Acquisition Corp III (FTAC.O) that may value that the U.S. payments services supplier at about $1.3 billion, including debt, according to individuals knowledgeable about the issue.
A bargain for Paya, which can be possessed by private-equity company GTCR, could be announced as early as next week, the sources said, cautioning that talks could still fall apart in the last minute and asking anonymity because the discussions are confidential.
FinTech Acquisition III, GTCR and Paya declined to comment.
Special-purpose acquisition firms (SPACs) are shell companies which raise money in an initial public offering (IPO) to pursue an acquisition at a later date, together with the acquired firm then moving public as a consequence of the offer.
SPAC mergers have emerged as a favorite path for companies to go public throughout the COVID-19 pandemic. These deals may assign company valuations to firms that feel unsure over how their IPO would function.
Most SPACs are emboldened by the powerful performance of a number of these deals, like sports gambling company DraftKings Inc DKNG.O and electrical car manufacturer Nikola Corporation NKLA.O.
A stock market list by Paya will come following a series of obligations firms have gone public in the past 12 months, with the likes of Shift4 Payments FOUR.N and Repay Holdings (RPAY.O) performing nicely since list their stocks.
FinTech Acquisition III is the third largest blank-check company founded by experienced investor Daniel Cohen. It increased $345 million in its November 2018 IPO.
Atlanta, Georgia-based Paya, formerly the U.S. charge arm of Britain’s Sage Group, has been valued at $260 million if GTCR obtained it in June 2017.
Paya currently functions over 100,000 clients, mostly small and midsize businesses across the USA and Canada.
A bargain for Paya are the next divestment in financial services by GTCR in recent days, after a bargain by Dark Knight Inc (BKI.N) on Monday to purchase its mortgage data company Optimal Blue for $1.8 billion.
Reporting by David French and Krystal Hu at New York and Joshua Franklin in Boston; Examining by Matthew Lewis