Plastiq, a B2B payments platform that empowers the small- to medium-sized business (SMB) economy, is planning to go public via a merger with Colonnade Acquisition Corp. II, a special purpose acquisition company (SPAC).
Once the deal closes, the combined company, as a publicly-listed entity, will have an implied estimated enterprise value of $480 million, according to a Thursday (Aug. 4) press release. Plastiq will use the proceeds from the transaction to grow its business and expand its product suite.
The combined company will operate under the name Plastiq, the release stated.
See also: 3 Must-Have B2B Payment Tools for Small Businesses
Plastiq Founder and CEO Eliot Buchanan will continue to lead Plastiq, which was launched in 2012. He called the SPAC merger with Colonnade an “important milestone” toward going public, according to the release.
“For too long, SMBs have been neglected from financial services,” he said, per the release. “As a public company, we plan to continue to invest in opportunities to scale the business with a growing product suite that enables us to provide SMB owners with access to sufficient, on-demand cash flow, which is a critical component to grow their businesses.”
Colonnade Acquisition Corp. II Chairman Joseph Sambuco said the SPAC thinks “Plastiq has a significant opportunity to penetrate its vast $9 trillion total addressable market of SMB payments,” considering the company’s “growth, highly scalable business model, expanding product suite and efficient go-to-market approach.”
Plastiq is at the crossroads between payer and supplier, and the company offers SMBs a choice in how to make payments. It also provides automation efficiency with payables and receivables and unlocks cash flow from business credit cards and instant short-term financing.
Many smaller firms think they are using a flexible solution when paying their vendors — namely through credit cards or bank accounts, Plastiq Chief Operating Officer Stoyan Kenderov told PYMNTS in an April interview. Many don’t realize they can accept payments across platforms regardless of how their buyers want to pay.
Read more: SMBs Struggle to Overcome Four Business Payments Frictions