William Allen and Andrew Rear backed Financials Acquisition Corp plans £150mn listing on LSE

William Allen and Andrew Rear backed Financials Acquisition Corp plans £150mn listing on LSE

LONDON, UK: Financials Acquisition Corp, a special purpose acquisition company (SPAC) sponsored by FINSAC LLP, which is a limited liability partnership founded by William Allen and Andrew Rear, announced its intention to float on the London Stock Exchange.

Financials Acquisition Corp intends to raise £150 million through the listing. The company will place 15 million Class A ordinary shares at a placing price of £10 per Ordinary Share. Each Warrant entitles the holder to purchase one Ordinary Share at a price of £11.50 per Ordinary Share, subject to adjustments, at any time commencing 30 days after the completion date of a Business Combination.

The Ordinary Shares and Warrants are each expected to be admitted to the standard listing segment of the Official List of the FCA and to the London Stock Exchange’s main market for listed securities.

William Allen and Andrew Rear have significant experience as senior executives in insurance and financial services. Mr Allen is an experienced capital market executive focused on the global insurance industry and Mr Rear is an insurance industry executive with a strong track record of delivering returns through investing in and growing insurance companies.

The Company is targeting a Business Combination with a technology-enabled company or business which is likely to operate in (or adjacent to) the insurance or broader financial services industry.

William Allen, Chief Executive Officer of the Company, said: “We are delighted to launch the first UK SPAC that will be focused on the rapidly growing Insurtech industry. Technology has transformed every facet of daily life and ambitious tech-enabled insurers are driving this growth as they disrupt traditional markets. Much of this transformation currently stems from private investments and we believe now is the right time to bring these next generation companies to the public market in London – the natural home of insurance.”

Andrew Rear, Executive Chairman of the Company, said: “Through the industry expertise and skill set of the management, board and sponsor team, the Company believes it can identify and help bring to the public market high quality Insurtech companies with the ambition to grow and significantly enhance the long-term value of their businesses as a listed company. Our combined global network and track record in insurance give us confidence that we will attract ideal targets in the space and we look forward to bringing a partnership to market soon.”

Financials Acquisition Corp has been formed for the purpose of completing an initial merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination with a technology-enabled company or business operating principally in (or adjacent to) the insurance or broader financial services industry.

The Company has a global geographic focus, but specific attention will be paid to those companies and businesses operating in the UK and across Europe. In any Business Combination the Company will seek to utilise the combination of its target sourcing capabilities, operational excellence, broad and global reach, and the Management Team’s track record in insurance to create value for its shareholders.

Technological developments have, over the past few decades, transformed every facet of daily and business life and this trend has been accelerated by the COVID-19 pandemic.

Whilst the insurance industry has historically been slow to adopt technology to overcome structural barriers in distribution, administration and underwriting, in recent years the market has shown signs of transformation, with many innovative companies emerging that are set to disrupt and become winners in their selected markets.

The Company groups these winners into four broad categories, namely (i) Insurtech managing general agents and similar product providers; (ii) Technology-enabled London market participants; (iii) Technology-enabled distribution; and (iv) Fintech, Insurtech and Regtech, software as a service (SaaS).

Much of the technology transformation that has occurred to date has taken place in privately held organisations. As numerous tech-enabled insurers reach sufficient scale and maturity to be ready for the public markets this step involves risks and distractions. The Company believes it will offer an efficient, attractive and smooth path to being a public company.

At the same time, the Company believes that the experience and skill set of the management team and the sponsor team can add value to the target company through M&A, capital structuring, capital raising, digital marketing and investor relations expertise, enhancing its long-term value as a listed entity.

The Sponsor Entity, founded by Andrew Rear and William Allen, is supported by certain institutional and strategic investors and industry experts. Such investors comprise funds managed by Toscafund Asset Management LLP, Empyrean Capital Overseas Master Fund Ltd. and Ventura Capital GP Limited and such industry experts include Dominic Christian and Aditya Dutt.

Add a Comment

Your email address will not be published. Required fields are marked *