Financial technology company SoFi announced plans to go public by merging with a SPAC controlled by Social Capital. SoFi provides a wide range of online financial services including loan refinancing, mortgages, and credit cards, and the merger values the company at $8.7B.
More context: A special purpose acquisition company (a “SPAC”) allows companies to become publicly listed by combining with an existing public entity that was created solely for that purpose (i.e. the SPAC). The structure, which surged in popularity last year, provides an alternative to the traditional IPO process.