Paya, an eCommerce FinTech, plans to go public through a special kind of merger with an investment company… Paya is set to merge with FinTech Acquisition Corp. III, which is a special-purpose acquisition company. SPACs are shell companies that raise money, which can then be used later for an acquisition. Typically when that deal occurs, the target company goes public.
The deal is part of the move toward market consolidation for FinTechs. Such dealings involve companies such as small business lending platform Kabbage, Ansonia Credit Data and B2B credit and payments systems provider MSTS.
Betsy Z. Cohen, chairman of FinTech III, added, “Integrating payment solutions with software is the fastest-growing segment of the payments industry, and Paya is perfectly positioned as the partner of choice for sophisticated software providers and middle-market business clients.”