Fintech Acquisition Corp. VI, a U.S.-based special purpose acquisition vehicle, is in talks to merge with Zimbabwean billionaire Strive Masiyiwa’s Cassava Technologies in a deal expected to be concluded at a valuation of $4 billion, anonymous insider sources revealed.
Fintech Acquisition is a blank-check company formed with the purpose of effecting a merger, asset acquisition, stock purchase and other allied businesses. It is backed by veteran dealmaker Betsy Cohen, who has a track record of initiating excellent deals such as taking public Perella Weinberg Partners and eToro Group Limited.
The U.S.-based company raised about $250 million in its IPO in June.
Cassava Technologies is a unit of telecommunications conglomerate, Econet Global. It is the first African integrated technology company with a presence in more than 15 countries on the continent.
Experts, who spoke anonymously on the proposed merger, pointed out that negotiations are still under way, implying that the transaction might not go through.
A representative of Cassava Technologies, who commented on the condition of anonymity, said: ”We continuously review our capital structure and consider all opportunities. Our primary focus is to continue to strengthen our position as a pan-African technology leader with a clear vision to accelerate Africa’s digital transformation.”
Cassava Technologies is a product of Econet Group’s restructuring exercise.
In November, Econet announced the merging of its fiber networks, data centers and other assets into Cassava Technologies. The company posted a loss of ZWL1.04 billion ($2.73 million) at the end of its 2020 financial year.
According to Forbes, Masiyiwa is the 16th richest man in Africa, with a net worth of $2.3 billion.
