Paysafe near a US$9b deal to go public

[WASHINGTON] A blank-check firm led by billionaire Bill Foley is nearing a deal to merge with Paysafe Group, a transaction that would take public the online payments firm backed by Blackstone Group Inc. and CVC Capital Partners, according to people with knowledge of the matter.

A deal featuring Foley Trasimene Acquisition Corp. II and Paysafe is slated to create an entity valued at about US$9 billion, including debt, said the people, who asked not to be identified because the details are private.

The SPAC is set to raise more than US$1 billion in new equity to support the transaction, one of the people said.

A deal could be announced as soon as this week, the people said, though no agreement has yet been finalised and the timing could change or talks could fall apart. Bloomberg News last month reported talks about a deal were under way.

At US$9 billion, it would be among the largest blank-check mergers this year, behind MultiPlan's US$11 billion merger with Churchill Capital Corp III, and United Wholesale Mortgage's pending US$16 billion merger with Gores Holdings IV Inc.

Representatives for Foley Trasimene, Paysafe, Blackstone and CVC declined to comment.

London-based Paysafe - which Blackstone and CVC bought for about 3 billion pounds (S$5.34 billion) in 2017 - offers payment processing services that enable companies to accept credit cards, cash and direct-debit transfers online. It also offers prepaid cards and digital wallets.

The company operates through brands including Income Access, Paysafecard, Skrill and Ne teller.

Foley Trasimene Acquisition Corp II raised US$1.47 billion in an IPO in August. Its shares closed Friday at US$10.62, giving it a market value of US$1.95 billion.

Foley has a track record of SPAC mergers in the financial services sector. One of his prior vehicles teamed with Blackstone to buy the insurer Fidelity & Guaranty Life for US$1.84 billion in 2017.

He has another SPAC that also went public this year called Foley Trasimene Acquisition Corp, which isn't involved in the Paysafe talks.

BLOOMBERG