Mail merge

Merger of Plastiq and Colonnade Acquisition Corp. II

Plastica US-based business-to-business (B2B) payment platform, and Colonnade Acquisition Corp. II entered into a definitive agreement and a merger plan.

The combined company will continue to be a publicly traded entity and will have an implied estimated enterprise value of approximately $480 million at closing, based on current assumptions.

Once closed, the combined company will operate as Plastiq and is expected to trade under a new ticker symbol. Plastiq’s management team will continue to lead the business.

The transactions contemplated by the agreement and the merger (business combination) plan reflect an implied estimated enterprise value at closing of $480 million (assuming no buyouts), representing a 6.4x multiple of Plastiq’s projected 2022 net sales of $75 million and a 4.6x multiple of Plastiq’s projected 2023 net sales of $105 million. The business combination does not include any secondary components and existing Plastiq shareholders will transfer all of their investments in Plastiq to the combined company.

Following the business combination, Plastiq is expected to add approximately $320 million to its balance sheet (assuming no buyouts and after payment of estimated transaction costs), providing capital flexibility for a organic and inorganic growth continues.

The agreement and the proposed merger

The business combination has been unanimously approved by the boards of directors of Plastiq and Colonnade. The business combination is expected to close in the first quarter of 2023, subject to the satisfaction of various closing conditions, including approval by Colonnade shareholders, the effectiveness of a registration statement to be filed with the Securities and Exchange Commission (the SEC) in connection with the business combination and other regulatory approvals.

White & Case LLP is acting as counsel to Colonnade in connection with the business combination. Latham & Watkins LLP is acting as legal counsel to Plastiq in connection with the business combination.

Colonnade Acquisition Corp. II is a blank check corporation, which was formed for the purpose of effecting a merger, stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with a or more companies or companies.

The Small and Medium Business Market Opportunity

Plastiq was founded on a mission centered on empowering the small and medium enterprise (SME) economy. While SMB payments represent a massive $9 trillion+ market opportunity for payments and financial products, SMBs remain underserved by existing financial services solutions.

Plastiq is at the center of payments between payer and supplier, providing SMBs with payment choice, a more efficient way to automate payables and receivables, while unlocking business credit card cash flow and instant financing short term. By decoupling the funding method (card or ACH) from the disbursement method (ACH, wire transfer, or paper check), Plastiq solves the mismatch between how companies and suppliers want to pay and get paid.

Plastiq integrates with multiple Enterprise Resource Planning (ERP) systems and offers a suite of Application Programming Interfaces (APIs) allowing enterprise customers to integrate B2B payment options into their customer experience.