The original deal signed by the internet finance firm with Atlas Merchant Capital's affiliate Concord Acquisition in July 2021 had valued the former at $4.5bn; the merger will enable Circle Internet Financial to go public with a possible listing on the NYSE
Circle Internet Financial has scrapped its previously signed merger deal with Concord Acquisition and has replaced it with a new one to reflect its latest valuation of $9bn.
The original deal between the Boston-based internet finance firm and Concord Acquisition was signed in July 2021. At that time, the deal valued Circle Internet Financial at $4.5bn.
Concord Acquisition, which is a special purpose acquisition company (SPAC), is an affiliate of Atlas Merchant Capital. The merger between Circle Internet Financial and Concord Acquisition will enable the former to go public with a possible listing on the New York Stock Exchange (NYSE).
Circle Internet Financial co-founder and CEO Jeremy Allaire said: “Circle has made massive strides toward transforming the global economic system through the power of digital currencies and the open internet.
“Being a public company will further strengthen trust and confidence in Circle and is a critical milestone as we continue our mission to build a more inclusive financial ecosystem. Making this journey with Concord under our new agreement is a strategic accelerator.”
Circle Internet Financial is engaged in offering internet-based payments and financial infrastructure to businesses. It is the principal operator of USD Coin (USDC), a dollar digital currency.
According to the internet finance company, the increase in its valuation has been driven by improvements in its financial outlook and competitive position, especially the growth and market share of USDC.
As of 16 February, USDC’s circulation has increased more than two folds since the signing of the original deal to reach $52.5bn.
Concord Acquisition chairman and Atlas Merchant Capital CEO Bob Diamond said: “We continue to believe that Circle is one of the most interesting, innovative and exciting companies in the evolution of global finance and we believe it will have an historic impact on the global economic system.
“Circle’s rapid growth and world-class leadership are underscored by a regulatory-first mindset fixed on building trust and transparency in global markets. We believe our new deal is attractive because it preserves the ability of Concord’s public stakeholders to participate in a transaction with this great company.”
The new deal has been approved by the board of directors of both firms. It is subject to approval by shareholders of the two firms, regulatory approvals, and other customary closing conditions.
The transaction has an initial outside date of 8 December 2022, which under certain circumstances, can be possibly extended to 31 January 2023.