AtlasClear, Atlas Fintech Holdings and Quantum FinTech Acquisition today announced a definitive business combination agreement that will result in Atlas FinTech transferring its trading technology assets to AtlasClear and the acquisition by AtlasClear as part of the initial business combination of Wilson Davis & Co., a correspondent clearing broker-dealer.
Transaction details were scant in the press release announcing the deal and the SPAC has yet to file the definitive merger agreement with the SEC. Quantum Fintech raised $175 million in a February 2021 IPO.
AtlasClear has also entered into a definitive agreement to acquire a federal reserve member following consummation of the merger, which is expected in the second or third quarter of 2023.
AtlasClear intends to provide specialized banking and clearing services to other financial services firms, with an emphasis on global markets currently underserviced by larger vendors. Once integrated, synergies between the federal reserve member and the correspondent clearing company are expected to allow for lower cost of capital, higher net interest margins, expanded product development and greater credit extension, the parties said in a press release.
If approved, upon closing AtlasClear stock is expected to list on the NYSE under the ticker symbol ATCL.
Quantum in August got into a kerfuffle with onetime merger partner TradeStation, which had notified the SPAC of its intent to terminate the deal — a move Quantum rejected.
Quantum responded that TradeStation “is not permitted to terminate the Merger Agreement … because TradeStation’s breaches of, and failure to perform under, the Merger Agreement are the primary cause of the failure of the closing of the Business Combination to occur on or before the Termination Date.”
At the time it appeared the companies might be moving toward litigation, however, neither side has mentioned the dispute since it erupted more than three months ago. Read more.
