(Reuters) – Billionaire Mark Cuban-backed Dave said on Monday it would go public through a merger with a blank-check firm sponsored by investment firm Victory Park Capital, valuing the banking app at $4 billion.
Financial services startup Chime has also held preliminary talks with investment banks about launching a stock market flotation, which could value it at more than $30 billion, Reuters reported in March.
The deal with special-purpose acquisition company (SPAC), VPC Impact Acquisition Holdings III Inc, includes a $210 million investment led by Tiger Global Management, with additional participation from Wellington Management and Corbin Capital Partners.
A SPAC is a blank-check firm that seeks to merge with a privately owned entity, a deal type that has become very common in the last year.
The merger, which comes after a lull in dealmaking due to weak investor appetite and greater regulatory scrutiny, is expected to close later this year.
Centerview Partners LLC served as the exclusive financial advisor to Dave. Citigroup and Jefferies served as capital markets advisors to VPCC and co-placement agents on the investment. (https://bit.ly/3fUUhd8)
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amy Caren Daniel)