Circle, a global financial technology firm that provides payments and treasury infrastructure for internet businesses, announced today that it has entered into a definitive business combination agreement with Concord Acquisition. The transaction values Circle at an enterprise value of $4.5 billion.
Terms of the agreement call for a new holding company to acquire both Concord and Circle, and trade on the NYSE under CRCL.
The business combination is supported by a $415 million PIPE with participation from institutional investors including Marshall Wace, Fidelity Management & Research, Adage Capital Management, accounts advised by ARK Investment Management and Third Point. Including the contribution of up to $276 million of cash held in Concord Acquisition’s trust account (assuming no redemptions), the transaction is expected to deliver up to $691 million of gross proceeds to the combined company.
Upon consummation of the transaction, existing Circle shareholders will maintain approximately 86% ownership interest in the combined company.
Circle is the principal operator of cryptocurrency USD Coin. USDC in circulation is greater than $25 billion and has supported over $785 billion in on-chain transactions.
The deal is expected to close in the fourth quarter, pending shareholder approval. Read more.