The pro-capitalism technology company, which will go public through the deal, will shortly offer financial services such as credit cards, insurance, brokerage, mortgages, and banking products
GloriFi to go public in $1.7bn deal with DHC Acquisition. (Credit: Tumisu/Pixabay)
With Purpose, an American fintech company doing business as GloriFi, has agreed to merge with blank cheque company DHC Acquisition in a deal that values the former at around $1.7bn.
The deal with the special purpose acquisition company will enable GloriFi to become publicly listed, with potential trading on Nasdaq.
GloriFi is a pro-capitalism technology company that will shortly offer financial services such as credit cards, mortgages, insurance, brokerage, and banking products.
The company is developing a financial lifestyle app that will offer personalised news, market data, weather, and insights to enable customers in navigating their finances and make better financial decisions.
GloriFi expects its technology stack to give a highly important advantage compared to industry incumbents who are said to struggle with legacy architecture.
The company claimed that its platform is scheduled to be developed at a fraction of the cost of the annual multi-billion technology spend of industry incumbents.
GloriFi founder and CEO Toby Neugebauer said: “Consumers today overwhelmingly want to do business with companies who share their values. We believe that this is a vastly underserved market, and our combining unapologetically pro-America values with what we believe is best-in-class technology provides GloriFi with a powerful competitive advantage to lead this exciting growth category.”
Through the merger, GloriFi will get proceeds of around $279m. This is expected to enable the enlarged company in tapping the underserved market of consumers who want to do business with firms that share their values.
DHC Acquisition co-CEO Thomas Morgan Jr. said: “This business combination with GloriFi fulfills our goal to find a great company with exceptional leadership in the consumer, financial technology and e-commerce sectors.
“We believe that the GloriFi team has identified a strong market of underserved customers across America, and they possess the battle-tested proven leadership necessary to serve that audience with excellence and execute their growth plans.”
The deal, which is subject to approval by DHC Acquisition’s shareholders and other conditions, is anticipated to close in Q1 2023.