Plastiq Inc., the B2B cost platform powering the small and midsize enterprise (“SMB”) financial system, and Colonnade Acquisition Corp. II (NYSE: CLAA) a publicly traded particular function acquisition firm, immediately introduced that they’ve entered right into a definitive settlement and plan of merger.
As soon as closed, the mixed firm will function beneath the title Plastiq and is predicted to commerce beneath a brand new ticker image. The Plastiq administration crew, led by Founder and CEO Eliot Buchanan, will proceed to guide the corporate. Plastiq Inc. (“Plastiq”) was based on a mission centered round empowering the SMB financial system. Whereas SMB funds signify a large market alternative of over $9 trillion for funds and monetary merchandise, SMBs stay largely underserved by present monetary providers options. Plastiq is on the middle of funds between payer and provider, empowering SMBs with selection in funds, a extra environment friendly option to automate payables and receivables, whereas unlocking money circulation from enterprise bank cards and prompt brief time period financing. By decoupling the funding technique (card or ACH) with the disbursement technique (ACH, wire, or paper test), Plastiq solves the mismatch between how companies and distributors wish to pay and receives a commission, creating larger selection and effectivity for all events. Plastiq integrates with a number of enterprise useful resource planning programs (“ERPs”) and gives a collection of utility programming interfaces (“APIs”) for enterprise shoppers to embed business-to-business (“B2B”) cost choices into their buyer expertise.
“We’re enthusiastic about this essential milestone of coming into the general public markets by a mix with Colonnade,” stated Eliot Buchanan, CEO of Plastiq. “For too lengthy, SMBs have been uncared for from monetary providers.
As a public firm, we plan to proceed to spend money on alternatives to scale the enterprise with a rising product suite that allow us to offer SMB homeowners with entry to enough, on-demand money circulation, which is a important part to develop their companies.”
Joseph Sambuco, Chairman of Colonnade Acquisition Corp. II (“Colonnade”) stated, “We’re happy to companion with Eliot and the broader management crew at Plastiq as we stay deeply impressed by their imaginative and prescient and keenness in bringing SMBs into the trendy period of B2B funds by their unparalleled product suite. Furthermore, we imagine Plastiq has a major alternative to penetrate its huge $9 trillion whole addressable market of SMB funds. We’re very enthusiastic about this transaction and are inspired by Plastiq’s progress, extremely scalable enterprise mannequin, increasing product suite and environment friendly go-to-market method.”
Transaction Abstract
The transactions contemplated by the settlement and plan of merger (the “Enterprise Mixture”) mirror an implied estimated enterprise worth at closing of $480 million (assuming no redemptions), representing a 6.4x a number of to Plastiq’s 2022 forecasted web income of $75 million and a 4.6x a number of to Plastiq’s 2023 forecasted web income of
$105 million. The Enterprise Mixture consists of no secondary part and present Plastiq fairness holders will roll over their whole investments in Plastiq into the mixed firm.
Because of the Enterprise Mixture, Plastiq is predicted so as to add roughly $320 million to its steadiness sheet (assuming no redemptions and after cost of estimated transaction bills), providing vital capital flexibility for continued natural and inorganic progress.
The Enterprise Mixture has been unanimously accredited by the boards of each Plastiq and Colonnade. The Enterprise Mixture is predicted to shut within the first quarter of 2023, topic to the satisfaction of assorted closing situations, together with approval by the shareholders of Colonnade, the effectiveness of a registration assertion to be filed with the Securities and Trade Fee (the “SEC”) in reference to the Enterprise Mixture and different regulatory approvals.
Extra details about the Enterprise Mixture, together with a duplicate of the settlement and plan of merger, can be offered in a Present Report on Type 8-Ok to be filed by Colonnade with the SEC and out there at www.sec.gov. As well as, Colonnade intends to file a registration assertion on Type S-4 with the SEC, which can embrace a proxy
assertion/prospectus, and can file different paperwork relating to the proposed Enterprise Mixture with the SEC.
Advisors
White & Case LLP is serving as authorized counsel to Colonnade in reference to the Enterprise Mixture. Latham & Watkins LLP is serving as authorized counsel to Plastiq in reference to the Enterprise Mixture.