Global advisory firm Perella Weinberg Partners and FinTech Acquisition IV announced today that they have entered into a definitive business combination agreement. Upon closing of the transaction, the combined company will operate as Perella Weinberg Partners and list on the Nasdaq under PWP. The transaction reflects an implied equity value for the company of approximately $975 million.
FinTech IV is chaired by Betsy Cohen, a long-time financial entrepreneur who founded The Bancorp.
The cash component of the deal will be funded by FinTech IV’s $230 million in trust as well as a $125 million fully committed PIPE at $10 per share from institutional investors, including Fidelity Management & Research Company, Wellington Management and Korea Investment & Securities, that will close concurrently with the business combination.
Net proceeds from the transaction (after addressing any potential redemptions by FinTech IV’s existing stockholders and transaction-related expenses), will first go towards repayment of outstanding indebtedness, the companies said in a statement. Up to approximately $110 million of net proceeds will be used to redeem a portion of ownership interests tendered for redemption by certain non-working PWP equity holders. Any remaining net proceeds will be used for general corporate purposes. At closing of the transaction, PWP expects to have a debt-free balance sheet with access to additional liquidity under an undrawn revolving credit facility. Read more.
