Covalto, a Mexican digital banking platform, intends to merge with a special purpose acquisition company in order to become the first Mexican FinTech to list on American stock exchanges (SPAC).
According to Reuters, the firm’s expected $547 million Pro-forma enterprise value stems from its Nasdaq listing deal. According to Covalto, formerly Credijusto, the transaction might generate up to $177 million in capital before expenditures.
According to the story, the finance comprises $60 million, half of which has previously been announced. The remaining will be provided by LIV Capital, the parent firm of the SPAC and the owner of LIVB. Covalto could not be reached for comment immediately on Thursday.
The company stated at the time that it was the first fintech company in Mexico to acquire a licensed bank, transforming itself into the first neobank in Latin America focused on serving small and medium-sized businesses (SMBs).
According to co-CEO David Poritz, the acquisition would enable “digital cross-border experiences” for enterprises doing business between the US and Mexico, “an area that we view as a key driver of expansion for Credijusto.”
Furthermore, in 2021, the company initiated talks with another SPAC about merging the two and going public on the New York Stock Exchange.
Credijusto, a 2015 startup, piqued the company’s interest because it is well-known among Latin American SMBs.
According to a statement issued at the time, the company has created a “multi-product offering” that “combines cutting-edge software design, unique data science applications, and better internal procedures.”
