SPACInsider Logo
FinServ Acquisition Corp. Files $200 Million SPAC
by Kristi Marvin on 2019-10-14 at 1:50pm

Late Friday evening, we had a second SPAC file for IPO with FinServ Acquisition Corp. (FSRVU).  FinServ is a $200 million financial services and fintech-focused SPAC being led by Lee Einbinder, who is the former Vice Chairman of Barclays.  Mr. Einbinder, who recently retired from Barclays in August of this year, will be CEO and Director of FinServ, along with Howard Kurz, as President and CFO.

However, this is mostly a former Lehman Brothers team, with Mr. Einbinder, Mr. Kurz, Robert Matza (a Director of FinServ) and Diane Glossman (also a Director of FinServ) having all worked at Lehman previously. Additionally, Barclays, which as we all know bought Lehman Brother during the financial crisis, will be left lead underwriter. This is Barclays’s second SPAC this year (and ever) having previously book-run Tortoise Acquisition Corp. (SHLL), this past March. However, Barclays will also be joined by Cantor, as joint book-runner, providing additional SPAC underwriting experience.

Additionally, while the FinServ team does not have prior SPAC experience, they do have an Advisor to this team that does, with Shami Patel. Mr. Patel, who is a Managing Director of the Asset Management Group of Cohen & Co., was a Director, Chair of the Audit Committee and member of the Compensation Committee of FinTech I and FinTech II. So while Mr. Patel is not part of the team proper, having him as an Advisor is a nice extra.

So clearly FinServ has the right background for a financial services/fintech SPAC.  However, what about the structure?  Well, FinServ is a 100% in trust, 24 months, 1/2 a warrant SPAC.  Again, similar to Osprey Technology, where in a different SPAC climate they might have tried for a 1/3 warrant (regardless of SPAC experience), they’re opting for the 1/2 warrant instead, which is an easier sell.  As a result, this SPAC should have no trouble rounding out their book.  It’s a good match of terms and team.

Lastly, the FinServ filing makes it eight on file to IPO, which, if all eight price this year, the count for 2019 will be 50 SPACs total.  That’s four more than 2018’s 46 SPACs.  Furthermore, it also means SPACs will potentially raise north of $11.4 billion in gross proceeds. Although, those numbers are likely to be much higher since we still have plenty of room this year for additional SPACs to file. Regardless, what this means is, 2019 is already going to be a record breaking year for the SPAC asset class (post-financial crisis).

Look for FinServ to price on a similar schedule to Osprey Technology – very late October (October 31st?) or early November.

Summary of terms below:

FinServ Summary of terms 10-14-19


Recent Posts
by Marlena Haddad on 2022-12-06 at 5:43pm

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC Liquidations: Broadscale, Revolution Healthcare, Research Alliance II, and Kairos Broadscale Acquisition Corp. to Liquidate  On December 6, 2022, stockholders of Broadscale Acquisition Corp. (NASDAQ:SCLE) approved amendments to change the termination date from February 17,...

by Nicholas Alan Clayton on 2022-12-06 at 1:02pm

Roth CH Acquisition IV Co. (NASDAQ:ROCG) has entered into a definitive agreement to combine with renewable energy equipment-maker Tigo for pre-money equity consideration of $600 million. Campbell, California-based Tigo manufacturers components that optimize and enhance safety for solar panel arrays, with installations on seven continents The combined company is expected to trade on the Nasdaq...

by Marlena Haddad on 2022-12-06 at 12:55am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Portugal real estate developer Vic Properties in merger talks with BurTech Caner-Led Aggregate Is Said to Discuss Vic Properties SPAC Deal Aggregate Holdings SA is in talks to take its Portuguese unit Vic...

by Marlena Haddad on 2022-12-06 at 11:11am

SportsMap Tech Acquisition Corp. (NASDAQ:SMAP) has entered into a definitive agreement to combine with intelligent thermal imaging provider Infrared Cameras Holdings (ICI) at a pre-money equity valuation of $100 million. Beaumont, Texas-based Infrared Cameras Holdings develops and manufactures infrared-sensor systems, offering handheld and fixed hardware. The combined company is expected to trade on the Nasdaq once the...

by Nicholas Alan Clayton on 2022-12-06 at 10:24am

Ares Acquisition Corporation (NYSE:AAC) has entered into a definitive agreement to combine with nuclear power company X-energy at an enterprise value of $2.2 billion. Rockville, Maryland-based X-energy has developed small modular nuclear reactor technology designed to provide nuclear plants for projects ranging from individual industrial sites to regional utilities. The combined company is expected to...

Privacy Policy|Terms Of Use
Copyright © 2022 SPACInsider, Inc. All Rights Reserved