The transaction is expected to result in $1.1bn in gross proceeds for the financial technology company

handshake-3298455_640 (20)

Existing Circle shareholders will hold nearly 86% of the public entity. (Credit: Adam Radosavljevic from Pixabay)

Global financial technology Circle has signed an agreement to merge with Concord Acquisition, a special purpose acquisition company, in a nearly $4.5bn deal to go public.

Circle is engaged in enabling businesses to harness the power of digital currencies and public blockchains for payments, commerce and financial applications.

The company is the principal operator of the dollar digital currency, USD Coin (USDC), which is claimed to have grown to over $25bn in circulation.

Concord is sponsored by investment firm Atlas Merchant Capital. In December last year, the company raised $276m in its initial public offering (IPO).

Under the terms of the agreement, Concord and Circle will be acquired by a new Irish holding company that will become a publicly traded company.

Following the completion of the transaction, existing Circle shareholders will hold nearly 86% of the public entity.

Concord Acquisition chairman and Atlas Merchant Capital CEO Bob Diamond said: “Circle is the true pioneer of trusted digital currencies, an increasingly critical part of the global financial system.

“The firm has earned its exceptionally strong reputation building highly innovative blockchain-enabled products and services within the regulatory perimeter.

“Circle’s world-class leadership team, its track record of delivery, and extraordinary ambition help position the firm as one of the most exciting companies in the transformation of finance.”

The deal is expected to result in more than $1.1bn in gross proceeds for Circle.

The proceeds include up to $276m of cash held in Concord’s trust account and $415m in PIPE financing from investors. Circle’s recently closed convertible note financing will make up the remaining proceeds.

Institutional investors including Marshall Wace, Fidelity Management & Research Company, Adage Capital Management, accounts advised by ARK Investment Management and Third Point have supported the PIPE financing.

Circle is expected to use the proceeds to support its continued growth through ongoing product development in partnership with its initial customers.

The transaction is expected to be completed in the fourth quarter of 2021, subject to approval by shareholders of Concord and Circle and other customary closing conditions, including any applicable regulatory approvals.