Goldman Sachs backed stablecoin firm Circle announced to go public
The Goldman Sachs-backed fintech company, focused on stablecoin development, has officially announced its plans to go public.
According to the announcement, a new Irish holding company will acquire Circle along with both Concord and become a publicly traded company that is expected to be listed on the New York Stock Exchange (NYSE) under the ticker “CRCL.”
Upon completion of the transaction, existing shareholders of Circle will hold around 86% ownership of the public entity.
The company said it would go public through a merger with blank-check company Concord Acquisition Corp in a deal valued at $4.5 billion.
Additionally, investors have committed $415 million in private investment and public equity (PIPE) financing, which combined with cash in trust and Circle’s newly closed convertible note financing will provide the firm with over $1.1 billion in gross proceeds.
The PIPE was supported by major institutional investors like Marshall Wace, Fidelity Management, and Research Company Adage Capital Management.
The co-founder and CEO of Circle, Jeremy Allaire will remain CEO of the company, and Concord chairman Bob Diamond is joining the board of directors.
The transaction has been unanimously approved by the board of both companies and is expected to close in the fourth quarter of 2021. The transaction is subject to approval by shareholders of Concord and Circle and other customary closing conditions.
Circle is the principal developer of USD Coin (USDC), the second-largest stablecoin after Tether (USDT).
Back in May, the company raised $440 million in private investment from an array of private equity, institutional and strategic investors.