Israel-founded Payoneer eyes US IPO, private share offering

Payments processing company founded in 2005 and based in NY is seeking a valuation of $1.2 billion to $1.5 billion, Calcalist financial website says

Shoshanna Solomon was The Times of Israel's Startups and Business reporter

A screenshot of how the Payoneer payment system works (YouTube screenshot)
A screenshot of how the Payoneer payment system works (YouTube screenshot)

Israel-founded fintech company Payoneer, which has developed payment processing technologies, is gearing up for an initial public offering or a private share offering in the US, the Israeli CEO of the firm, Keren Levy, told workers in an email on Monday.

In the message to Israeli employees, Levy said that Payoneer has enlisted the services of a US bank to explore the option of either an initial public offering of shares or a private placement of shares.

The email confirmed a report on Calcalist earlier on Monday that said that officials of the fintech firm have met with bankers and investment banks to study the various options for a share sale in 2019, the financial website said.

The firm is seeking to raise money according to a valuation of $1.2 billion-$1.5 billion, Calcalist said. In 2015 the firm considered a share sale but decided to wait. Sales of the company total some $400 million to $500 million a year, Calcalist said.

The New York-based startup was founded in 2005 by Yuval Tal and has raised some $280 million to date, according to company data. Its investors include Susquehanna Growth Equity, Viola Ventures, Greylock Partners and Vintage Investment Partners, according to data compiled by Start-Up Nation Central, which tracks Israel’s tech industry.

The company’s technology enables 4 million business and professionals from more than 200 countries using 150 currencies to make cross-border payments. The startup employs 1,000 workers in 14 offices, its website says. Some 830 of its workers are in its Petah Tikva research and development center, according to company data. The firm’s international CEO is Scott Galit.

In 2015 the company signed an accord with Amazon to use expand its cross-border payment options in 24 countries. In 2016, ecommerce firm partnered with Payoneer to enable merchants globally sell their products on Rakuten and get paid in their local currency. Other clients include Uber, Google and Getty Images.

A spokesman for the company declined to comment.

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