Concord Acquisition Corp (NYSE: CND) has moved into a definitive business combination agreement with a global financial technology firm called Circle. It is a firm that focuses on the provision of treasury and payments infrastructure for internet businesses. On the other hand, Concord is a publicly traded purpose acquisition company, and the two must conform to the terms of the deal.
The terms of the deal
The most important aspect of the terms of the agreement has to do with the new Irish holding company taking over both Circle and Concord. The new move enables it to scale higher to become a publicly traded company that will operate on NYSE under the symbol “CRCL.”
It is a deal that places a value of $4.5 billion on Circle. The transaction might soon close, leading to the existing Circle shareholders upholding about 86% of the public entity’s ownership. In addition, it is a transaction that has compelled investors to commit about $415 million in PIPE financing. Combining the mentioned amount with Circle’s recently closed convertible note financing and cash trust will enable Circle to achieve $1.1 billion in gross proceeds at the close of the deal.
The PIPE has enjoyed support from top institutional investors such as Adage Capital Management LP, Marshall Wace LLP, accounts advised by ARK Investment Management LLC (“ARK”), Fidelity Management & Research Company LLC, and Third Point.
The management aspect
Jeremy Allaire, one of Circle’s co-founders, will uphold his position as the company’s CEO. In addition, the Chairman of Concord Acquisition Corp, Bob Diamond, who also happens to be the CEO of Atlas Merchant Capital, will join the board. The transaction is anticipated to come to a close in Q4 2021.
Allaire opines, “We are thrilled to partner with Concord’s executive and investment team, drawing on their decades of operating experience growing financial services businesses around the world.”