As you might have guessed from the name of the special purpose acquisition company (SPAC), Foley Trasimene Acquisition II (NYSE:BFT) is a project of William P. Foley, II. Folks who like Foley’s track record will definitely want to consider a position in BFT stock.
It’s fair to say that Foley knows a thing or two about SPAC’s, and about making deals with great businesses. In the case of Foley Trasimene Acquisition II, he’s making a value-added deal with integrated payments platform Paysafe.
Will taking Paysafe public pay off for Foley, and for BFT shareholders? That’s the billion-dollar question, and the signs tend to indicate that the answer is definitely yes.
But don’t just take my word for it. Let the data guide your decisions, and there’s no shortage of data to back up a long position in BFT. So, let’s commence with an exploration of the technical aspects of BFT stock.
A Closer Look at BFT Stock
Foley Trasimene Acquisition II first announced that it’s planning a merger deal with Paysafe in December. It was a big-money transaction involving no less than $2 billion worth of private investment in public equity (PIPE) from big-money investors.
Prior to that announcement, BFT stock clung closely to the $10 level. Upon the merger deal’s disclosure, however, the bulls promptly took control of the price action in the stock.
By the middle of December, BFT stock had already broken through the $14 level. Moreover, at the end of 2020, BFT shares were trading near $15.
January was a real roller-coaster ride as the BFT stock price lurched to a 52-week high of $19.57 before falling back to $15. This is a textbook example of how it’s often better to buy dips than to chase after vertical price moves.
Now BFT stock is at $16.50 and the overall trend is still to the upside. Just be advised that BFT is a high-beta stock that’s capable of rapid moves in both directions.
Bill’s Excellent Adventure
Often referred to by the informal first name Bill, SPAC specialist Foley is renowned for his business acumen.
Foley’s backstory is fascinating, to say the least. I would recommend conducting some research on him before buying shares of BFT stock.
The man has led four SPAC’s. Despite the “II” at the end of the name, Foley Trasimene Acquisition II is Foley’s fourth SPAC.
A slide presentation submitted on behalf of Paysafe to the U.S. Securities and Exchange Commission further explains that Foley has led five multi-billion-dollar public market platforms, with over 100 acquisitions among them.
Perhaps Foley’s biggest success in this area is Fidelity National Financial (NYSE:FNF).
Foley is the former CEO of Fidelity National Financial and is now the company’s chairman. He helped build Fidelity National Financial into the largest title insurance company, growing its equity value from $3 million to an astounding $11 billion.
So, Foley’s been successful in the past. He’s also a local celebrity as Foley owns the Las Vegas Knights NHL team.
This still leaves open a crucial question, though. Why would Foley target Paysafe as his next success story?
Since Foley is a guru in business and finance, I would claim that Paysafe is a perfect fit. Paysafe has processed nearly $100 billion of payment volume and is effectively staking its claim as the leading integrated payments platform.
Paysafe’s press release offers up some more data points for the skeptics:
With over 20 years of online payment experience, an annualized transactional volume of over US $98 billion in 2019, and approximately 3,000 employees located in 12+ global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies around the world.
To that, Paysafe’s slide presentation adds that the company estimates $1.5 billion in organic revenue for 2021, as well as estimated 11% organic revenue compound annual growth rate (CAGR) for 2020 to 2023.
The Bottom Line
I believe we’ve seen more than enough data to answer the question of “Why Paysafe?”
Will BFT stock be Foley’s next blockbuster winner? There are no guarantees in the financial markets, but I’d say if you want to stay safe, stick with Paysafe.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.