Tax-free shopping and payment solution provider Global Blue is being listed on the New York Stock Exchange.
The FinTech company will be listed through a merger with Far Point Acquisition Corporation, a special purpose acquisition company co-sponsored by the institutional asset manager Third Point and Thomas W. Farley, the former New York Stock Exchange president who will now become the company’s chairman.
Jacques Stern will remain as the CEO of Global Blue and will continue to lead the business.
“Global Blue is the clear market leader in the attractive and growing tax-free shopping ecosystem worldwide,” said Farley. “The company has achieved remarkable progress in digitalisation, geographic expansion and strategic value creation under Jacques’ leadership and the stewardship of its existing shareholders, including controlling shareholder Silver Lake, whose principals I have known personally and professionally for years.”
The PayTech company will also receive over $1bn in new funding from Fair Point and new investors, including Ant Financial Services, the FinTech company that is part by the Alibaba Group. Ant Financial Services raised $14bn in its Series C funding round in June 2018.
Far Point will inject $650m of cash and $350m from Ant Financial Services Group, Third Point and several established strategic equity investors.
The investment will primarily be used to pay existing Global Blue shareholders an amount of approximately $967m cash consideration.
Silver Lake, the private equity firm, and other established investors will remain significant shareholders in the combined company. Silver Lake led rental management Vacasa’s $319m funding round in November.
The new public company will be incorporated in Switzerland.
Stern argued that the move will add to the success story that have empowered Global Blue to cater to over 300,000 merchant stores and enabling 13 million international shoppers to claim VAT refunds in 43 countries.
“In recent years, we have built a true leader in our industry, powered by a cutting-edge integrated technology platform,” he said. “We strongly believe that continued investment in innovation will bring value to all our partners and customers, and we look forward to accelerating our strategic collaboration with Ant Financial as a showcase of such innovation.”
Commenting on the deal, Angel Zhao, president of Ant Financial’s International Business Group, added, “Global Blue is an important partner for Ant Financial and the broader Alibaba ecosystem as we continue to deepen our globalisation strategy. Alipay and our global e-wallet partners’ user bases, along with Global Blue’s extensive merchant and airport footprint across more than 50 countries, together creates significant potential to expand the relationship and introduce new technologies and services to the marketplace.”
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