Israel’s Payoneer to go public on Nasdaq at $3.3 billion valuation

The company announced a SPAC agreement with FTAC Olympus Acquisition Corp, to invest hundreds of millions in secondary options

Israeli fintech powerhouse Payoneer Inc. announced on Wednesday that it has entered into a definitive agreement with Nasdaq listed SPAC FTAC Olympus Acquisition Corp (FTOC). Once the reorganization is complete, the merged company will begin trading at an implied estimated enterprise value of approximately $3.3 billion. Payoneer currently holds $100 million in its balance and FTOC has raised $750 million for the merger, including commitments for $300 million in PIPE from an investor group. An estimated $450 million will be used to purchase secondary options from existing shareholders, managers, and employees. Roughly $100 million will be used by the company for various expenses and the rest, roughly $500 million, will be invested in its operations.

 

Among the investors expected to pour money into the company are existing backers Wellington Management and additional investors Dragoneer Investment Group, Fidelity Management & Research Company LLC, Franklin Templeton, certain funds managed by Millennium Management, funds and accounts advised by T. Rowe Price Associates, Inc., and Winslow Capital Management, LLC.

 

Scott Galit and Keren Levy. Photo: Tommy Harpaz

Speaking to Calcalist, Keren Levi, Payoneer’s COO and GM of its Israeli center, said the company had not attempted to go public in the past and throughout the years had sought the proper timing to do so. “2020 was a year of expedited activities and we processed more than $44 billion in volume. Following the merger, we will have $500 million available for investment in our business development.”

 

Levy doesn’t believe that the company is late to go public, even though many other Israeli companies would have chosen to do so much earlier. “For us, this is the right time and we chose the best partner we could find for our new path. FTOC’s Chairwoman Betsy Cohen has rich experience, including in the Fintech sector that we’re active in and she is a veteran in the SPAC world who knows how to lead such transactions.

 

"Payoneer is at the forefront of the rapid, global shift to digital commerce across all sectors. Its innovative and unique high-tech, high-touch platform positions Payoneer at the epicenter of some of the most powerful and enduring trends driving global commerce today,” said Betsy Cohen, Chairman of the Board of Directors of FTAC Olympus Acquisition Corp. “Its proven ability to facilitate the overall growth of e-commerce through capabilities such as B2B payment digitization, global risk and compliance infrastructure, and the enablement for SMBs to rapidly grow and scale sets Payoneer apart. I couldn’t be more excited about this transaction which will allow this talented team to accelerate their growth strategy and continue to democratize access to global commerce."

 

Payoneer, which was founded in 2005 by Yuval Tal, developed a platform that streamlines global commerce for millions of small businesses, marketplaces, and enterprises from 190+ countries and territories. Leveraging its robust technology, compliance, operations, and banking infrastructure, Payoneer delivers a suite of services that includes cross-border payments, working capital, tax solutions, risk management, and payment orchestration for merchants.

 

Since it was founded, Payoneer has raised a total of $270 million from backers including TCV, Susquehanna Growth Equity (SGE), Viola Ventures, Wellington Management, Nyca Partners, Temasek and more.

Viola Ventures Managing Partner and chairman Avi Zeevi. Photo: Roni Soffer

 

“Technology is transforming commerce globally, bringing down borders and making it possible for entrepreneurs from all over the world to build a digital business,” said Scott Galit, Chief Executive Officer of Payoneer. “This new way of doing business requires a global financial platform built for the digital age. Payoneer’s purpose-built platform provides global connectivity with localized capabilities, layered on top of a robust and scalable compliance, risk, and regulatory infrastructure. We are incredibly excited about the opportunity ahead and believe that our leading global platform, brand, product suite, and network create significant and sustainable competitive advantages and that our multi-pronged growth strategy will deliver strong growth for years to come. We are thrilled to partner with Betsy Cohen and the FTOC team and are confident that we will benefit from their significant industry expertise as we embark on our journey as a public company.”

 

“As someone who has been accompanying Payoneer for the past 12 years, I am proud to see that it has grown to take on a leadership position and am excited by the opportunity to continue to build a global digital platform that provides businesses of all sizes and in all corners of the world access to financial services,” said Viola Ventures Managing Partner and chairman Avi Zeevi.