Plastiq and Colonnade Acquisition Corp. II to merge

The combined company will continue as a publicly listed entity and have an implied estimated enterprise value of approximately USD 480 million at closing, based on current assumptions.

Once closed, the combined company will operate under the name Plastiq and is expected to trade under a new ticker symbol. The Plastiq management team will continue to lead the company.

The transactions contemplated by the agreement and plan of merger (Business Combination) reflect an implied estimated enterprise value at closing of USD 480 million (assuming no redemptions), representing a 6.4x multiple to Plastiq’s 2022 forecasted net revenue of USD 75 million and a 4.6x multiple to Plastiq’s 2023 forecasted net revenue of USD 105 million. The Business Combination includes no secondary component, and existing Plastiq equity holders will roll over their entire investments in Plastiq into the combined company.

As a result of the Business Combination, Plastiq is expected to add approximately USD 320 million to its balance sheet (assuming no redemptions and after payment of estimated transaction expenses), offering capital flexibility for continued organic and inorganic growth.

The agreement and plan of merger

The Business Combination has been unanimously approved by the boards of both Plastiq and Colonnade. The Business Combination is expected to close in the first quarter of 2023, subject to the satisfaction of various closing conditions, including approval by the shareholders of Colonnade, the effectiveness of a registration statement to be filed with the Securities and Exchange Commission (the SEC) in connection with the Business Combination, and other regulatory approvals.

White & Case LLP is serving as legal counsel to Colonnade in connection with the Business Combination. Latham & Watkins LLP is serving as legal counsel to Plastiq in connection with the Business Combination.

Colonnade Acquisition Corp. II is a blank check company, which was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses or companies.

The market opportunity of small and midsize business

Plastiq was founded on a mission centered around empowering the small and midsize business (SMB) economy. While SMB payments represent a massive market opportunity of over USD 9 trillion for payments and financial products, SMBs remain underserved by existing financial services solutions.

Plastiq is at the center of payments between payer and supplier, offering SMBs with choice in payments, a more efficient way to automate payables and receivables, while unlocking cash flow from business credit cards and instant short-term financing. By decoupling the funding method (card or ACH) with the disbursement method (ACH, wire, or paper check), Plastiq solves the mismatch between how businesses and vendors want to pay and get paid.

Plastiq integrates with multiple enterprise resource planning systems (ERPs) and offers a suite of application programming interfaces (APIs) for enterprise clients to embed B2B payment options into their customer experience.