CURO Stock: 14 Things to Know About FinServ (FSRV) and the Katapult SPAC Merger

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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).

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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.


Article printed from InvestorPlace Media, https://investorplace.com/2020/12/curo-stock-14-things-to-know-about-finserv-fsrv-and-the-katapult-spac-merger/.

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