FinTech Acquisition (FNTC) has agreed to merge with CardConnect, a payment processing and technology solutions provider and subsidiary of FTS Holding, for approximately $180m in cash and $170m in FNTC common stock.
As part of the merger, FNTC will acquire CardConnect and will be renamed as CardConnect.
The new merged company will continue to list its common stock on the Nasdaq Stock Market under the ticker symbol CCN.
Following the merger, the CardConnect management team will continue to lead the company.
Also, FNTC chairman Betsy Z. Cohen, Richard Garman, FTV Capital managing partner, and Chris Winship, FTV Capital partner, will sit on the CardConnect board of directors.
Currently majority owned by FTV Capital, CardConnect offers full service payments platforms for both small and midsize business (SMBs) and enterprises via a comprehensive product portfolio,
Its portfolio includes payments platform CardPointe and CardSecure, a secure gateway that integrates with enterprise level Oracle and SAP ERP systems as well as PCI validated point-to-point encryption (P2PE) solutions.
The merger is slated to complete in June 2016, subject to FNTC stockholder approval, the receipt of proceeds from the proposed financing activities and other customary closing conditions.
CardConnect president and CEO Jeff Shanahan said: "We are very excited to be partnering with Betsy and FNTC in a transaction that provides an efficient path for a successful transformation to a public company. Our new capital structure will support our opportunistic acquisition strategy and our development of new products and technology, which will help scale the business."