Financial technology firm Opportunity Financial LLC, or OppFi, agreed to merge with blank-check company FG New America Acquisition Corp. to go public.
Upon the deal's projected closing by the end of the second quarter, the combined company's common stock is expected to trade on the New York Stock Exchange under the ticker OPFI.
The transaction implies an equity valuation of about $800 million at closing for the combined company. The amount is expected to be fully funded through cash in trust.
The equity value represents 12.2x and 9.1x the projected 2021 and 2022 adjusted net income, respectively.
OppFi is a digital platform that provides banks artificial intelligence technology to offer accessible products to consumers. The firm said in a press release that its core customer is the median U.S. consumer who earns roughly $50,000 annually and has a bank account but is often locked out of traditional mainstream financial products. OppFi has facilitated more than 1.5 million loans over the past nine years, it said.
Moelis & Co. serves as the exclusive financial adviser, and DLA Piper LLP (US) is legal adviser, to OppFi. Needham & Co.; ThinkEquity, a division of Fordham Financial Management Inc.; Piper Sandler & Co.; and Northland Securities are serving as capital markets advisers to FG New America Acquisition Corp. White & Case LLP is the legal adviser to the special purpose acquisition company.