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FT Partners Advises Open Lending on its $1.3 billion Merger with Nebula Acquisition Corporation

Overview of Transaction

  • On January 6, 2020, Nebula Acquisition Corporation “Nebula” (Nasdaq: NEBU), a special purpose acquisition company ("SPAC"), sponsored by True Wind Capital, announced a definitive merger agreement with Open Lending, valuing the Company, at closing, at an implied enterprise value of approximately $1.3 billion
  • The transaction represents a 12.2x EV / 2020E EBITDA multiple
  • Upon the close of the transaction, the combined Company intends to change its name to Open Lending Corporation and is expected to trade on Nasdaq
  • Open Lending is a lending enablement platform for the automotive finance market powered by proprietary data, advanced decisioning analytics, an innovative insurance structure and scaled distribution

Significance of Transaction

  • While creating significant liquidity for existing shareholders, Open Lending’s Management team will continue to lead the merged Company as over 70% of their existing equity is expected to be rolled as part of the transaction
  • Open Lending will pursue significant growth opportunities within its existing customer base of credit unions, banks, and OEM Captives, as well as through new channels, asset classes, and geographies

FT Partners' Role

  • FT Partners served as exclusive strategic and financial advisor to Open Lending
  • Exemplifies FT Partners ability to deploy expertise for a complex business operating at the intersection of consumer finance, InsurTech, and Auto FinTech
  • Builds on FT Partners' expertise in navigating the unique process in selling companies to SPACs, and follows highly successful sales of FT Partners’ clients CardConnect and REPAY