{"id":107746,"date":"2021-01-07T22:34:44","date_gmt":"2021-01-07T22:34:44","guid":{"rendered":"https:\/\/precoinnews.com\/?p=107746"},"modified":"2021-01-07T22:34:44","modified_gmt":"2021-01-07T22:34:44","slug":"online-lender-sofi-to-go-public-through-merger-with-palihapitiya-backed-spac","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/online-lender-sofi-to-go-public-through-merger-with-palihapitiya-backed-spac\/","title":{"rendered":"Online lender SoFi to go public through merger with Palihapitiya-backed SPAC"},"content":{"rendered":"

(Reuters) – U.S. online lending startup Social Finance Inc (SoFi) said on Thursday it has agreed to go public through a merger with Social Capital Hedosophia Holdings Corp V, a blank-check acquisition company led by venture capital investor Chamath Palihapitiya.<\/p>

FILE PHOTO: Chamath Palihapitiya, Founder and CEO of Social Capital, presents during the 2018 Sohn Investment Conference in New York City, U.S., April 23, 2018. REUTERS\/Brendan McDermid\/File Photo<\/figcaption>

The deal values SoFi at around $8.65 billion and is expected to provide up to $2.4 billion in cash proceeds to the San Francisco-based company.<\/p>\n

Reuters had reported earlier on Thursday that SoFi and Social Capital were nearing a deal to merge. Shares of Social Capital closed up 58% at $19.17 apiece.<\/p>\n

\u201cOur goal is to build a one-stop financial platform and our diversified products can help us navigate both a high interest and low-interest environment,\u201d SoFi Chief Executive Anthony Noto told Reuters in an interview, adding the company has seen home loan refinancing business and investment products growing fast in the past year.<\/p>\n

SoFi plans to use the proceeds to pay back debt from the $1.2 billion acquisition last year of payment software Galileo and to grow its business.<\/p>\n

Founded in 2011, SoFi capitalized on the retrenchment of banks from large swaths of consumer lending in the aftermath of the 2008 financial crisis.<\/p>\n

It started with refinancing student loans and expanded into mortgages and personal loans. The company said in October it had received preliminary approval from U.S. regulators for its application for a national bank charter. The company has also branched out into stock trading and cash management accounts.<\/p>\n

Noto is a former Goldman Sachs Group Inc investment banker and Twitter Inc\u2019s ex-chief operating officer. He succeeded SoFi co-founder Mike Cagney, who stepped down in 2018.<\/p>\n

SoFi said it expects to generate about $1 billion of adjusted net revenue in 2021, a 60% jump year-over-year.<\/p>\n

Social Capital Hedosophia V is one of three so-called special purpose acquisition companies (SPACs) backed by U.S. investor Palihapitiya and London-based Ian Osborne that are currently looking for acquisitions.<\/p>\n

SoFi had planned to go public through a traditional initial public offering (IPO) in 2021 after raising money in a private round but chose the SPAC route because it preferred the deal certainty and the ability to make projections in talks with investors, Noto said.<\/p>\n

A SPAC is a shell company that raises money in an IPO to merge with a privately held company that then becomes publicly traded as a result.<\/p>\n

They have emerged as a popular IPO alternative for companies, providing a path to going public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.<\/p>\n

Palihapitiya has been one of the most prolific sponsors of SPACs, merging them with a range of companies, from space tourism firm Virgin Galactic Holdings Inc to home-selling platform Opendoor Technologies Inc.<\/p>\n

Social Capital Hedosophia V raised around $800 million in an IPO on the New York Stock Exchange in October.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) – U.S. online lending startup Social<\/p>\n","protected":false},"author":3,"featured_media":107745,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nOnline lender SoFi to go public through merger with Palihapitiya-backed SPAC - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/online-lender-sofi-to-go-public-through-merger-with-palihapitiya-backed-spac\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Online lender SoFi to go public through merger with Palihapitiya-backed SPAC - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"(Reuters) – U.S. online lending startup Social\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/online-lender-sofi-to-go-public-through-merger-with-palihapitiya-backed-spac\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-07T22:34:44+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/01\/cnewsfotor23.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/online-lender-sofi-to-go-public-through-merger-with-palihapitiya-backed-spac\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/online-lender-sofi-to-go-public-through-merger-with-palihapitiya-backed-spac\/\",\"name\":\"Online lender SoFi to go public through merger with Palihapitiya-backed SPAC - 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