Paya Inc is nearing a deal to merge with blank-check acquisition company FinTech Acquisition Corp III (FTAC.O) which could value the U.S. payments solutions provider at around $1.3 billion, including debt, according to people familiar with the matter.
A deal for Paya, which is owned by private-equity firm GTCR, could be announced as early as next week, the sources said, cautioning that talks could still fall apart at the last minute and requesting anonymity because the negotiations are private.
FinTech Acquisition III, GTCR and Paya declined to comment.
Special-purpose acquisition companies (SPACs) are shell companies that raise money in an initial public offering (IPO) to pursue an acquisition at a later date, with the acquired company then going public as a result of the deal.
SPAC mergers have emerged as a popular route for companies to go public during the COVID-19 pandemic. These deals can assign firm valuations to companies that feel uncertain over how their IPO would perform.