Banking app Dave, which helps customers avoid overdraft fees, and VPC Impact Acquisition Holdings III today announced that they have entered into a definitive agreement for a business combination.
Upon closing, the combined company is expected to have a fully-diluted equity value on a pro forma basis of approximately $4 billion, assuming no redemptions. It is expected to result in over $375 million of cash on the balance sheet, reflecting a contribution of up to $254 million of cash held in VPCC’s trust account and a $210 million PIPE led by Tiger Global Management with additional participation from Wellington Management and Corbin Capital Partners.
Launched in 2017, Dave has expanded into a platform helping 10 million customers with banking, financial insights, overdraft protection, building credit and finding side gigs.
The deal is expected to close late in the third quarter or in the fourth quarter. Read more.
