Covalto Ltd., a digital banking and services platform for SMEs in Mexico, today announced plans to merge with LIV Capital Acquisition II, which is also based in Mexico City. The deal has an estimated pro-forma valuation of $547 million.
If approved, Covalto will list on the Nasdaq under the new ticker symbol CVTO, marking the first time shares of a Mexican fintech will publicly trade on a U.S. stock exchange.
Formerly known as Credijusto, Covalto was an early innovator in building the technology infrastructure in Mexico to leverage digital tax, e-invoice and other financial data to underwrite and service SMEs at scale, according to the press release announcing the deal.
The transaction is expected to generate up to $177 million of capital before expenses, assuming no redemptions from LIVB shareholders.
The deal includes committed financing of $60 million, $30 million of which has been funded and the remainder to be funded by LIV Capital following today’s announcement. Read more.
