Katapult is on its way to becoming a publicly-traded company thanks to a merger with special purpose acquisition company (SPAC) FinServ Acquisition (NASDAQ:FSRV).
Here’s what investors interested in the Katapult SPAC merger need to know before the company’s goes public.
- Katapult is a financial tech company that offers e-commerce point-of-sale for nonprime U.S. customers.
- The company’s offerings include goods from a range of e-commerce retailers.
- The SPAC merger will have the new company taking on the Katapult name.
- When the deal closes, the new company will also change from FSRV to the new KPLT ticker.
- The merger is also good news for Curo Group Holdings (NYSE:CURO), which owns a 40% stake in Katapult.
- As of this writing, CURO stock is on the rise with more than 30 million shares having changed hands.
- To put that in perspective, the company’s daily average trading volume is only about 154,000 shares.
- The Katapult SPAC merger values the company at $1 billion.
- The deal will provide it current shareholders with $325 million of cash consideration.
- It will also add another $50 million to the company’s balance sheet.
- This money comes from FinServ’s$250 million cash in trust and a $150 million private investment in public equity (PIPE).
- The Boards of Directors of both Katapult and FinServ have given their unanimous support to the SPAC merger.
- Now, it just needs to complete other customary closing conditions, including getting approval from FSRV shareholders.
- So long as there are no issues with this, the two companies expect the deal to close in the first half of 2021.
FSRV stock was up 26.5% and CURO stock was up 83.1% as of noon Friday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.