Will Plaid SPAC or IPO in 2025?
Visa planned to acquire Plaid in 2020, but the deal was abandoned after regulators expressed concerns.
The fintech recently raised capital at a $6.1 billion valuation.
Plaid's management has said that an IPO won't happen in 2025 but that it will at some point.
These 10 stocks could mint the next wave of millionaires ›
There are several highly anticipated financial technology, or fintech, IPOs that are likely to occur within the next few years. One of them is financial data network operator Plaid, which connects financial institutions and applications, and was former a Visa (NYSE: V) acquisition target.
Plaid securely connects financial institutions and applications. For example, when I wanted to link my checking account to make mortgage payments at a different bank, Plaid was the tool that was used to connect them. When I wanted to verify income deposits into my bank account for loan approval purposes, it was Plaid that made it possible. These are just a few examples, and there are many others, such as connecting with your bank account to set up secure, recurring payments.
Plaid's traction has been impressive. Over half of all U.S. adults have used the platform, and from a business perspective, offering Plaid's seamless connectivity results in 25% higher sign-ups. The company makes its money primarily through volume-based subscription plans sold to business customers.
At this time, we don't know Plaid's exact IPO timeline. But the company has made it clear that an IPO is in the future, so here's what investors should keep in mind and what we know so far.
Plaid's failed merger and recent funding activity
Plaid was founded in 2013 and has grown impressively, connecting with well over 11,000 financial institutions in the U.S. and elsewhere. In 2020, the company agreed to be acquired by Visa for $5.3 billion, but the deal ended up being cancelled because the Department of Justice sued to block it over antitrust concerns.
More recently, Plaid raised $575 million in fresh capital in April of this year at a $6.1 billion valuation. This is less than half of its peak valuation in a 2021 funding round but is still more than the $5.3 billion Visa had been prepared to pay. And to be clear, it's very common for private tech companies to command lower valuations in today's market environment than in the 2021 zero-interest days.
Will Plaid go public or SPAC in 2025?
The recent fundraising round should take care of Plaid's near-term capital needs and makes an IPO in 2025 highly unlikely. At the time of the raise, a company spokesperson specifically said that Plaid won't go public in 2025. Of course, that isn't a guarantee that we won't see an IPO, and if the tech IPO market and valuations heat up, it's still entirely possible.
It's also worth noting that Plaid doesn't necessarily need to use a traditional IPO to go public. Special-purpose acquisition companies, or SPACs, are making a comeback this year. Through the end of the second quarter, 71 of these blank-check companies have listed on the public markets in search of merger targets, more than in all of 2024, and this can be a desirable way to go public and raise lots of capital at the same time.
Finally, just because management has said that an IPO won't happen this year doesn't mean something -- either a traditional IPO or SPAC merger -- won't be announced by the end of the year. The short version is that Plaid is likely to go public within the next few years, but the timeline remains uncertain -- for now.
Don't miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this.
On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $442,907!*
Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,654!*
Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $634,627!*
Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025
Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.
Will Plaid SPAC or IPO in 2025? was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 minutes ago
- Yahoo
Can Apple's Slim iPhone And Cheaper Macs Reverse The 2025 Stock Slump?
Apple (NASDAQ:AAPL) is gearing up for a significant rebound in the second half of fiscal 2025, driven by the highly anticipated launch of new product cycles, including a 'slim' iPhone, and sustained momentum in its lucrative Services division, even as it contends with rising tariff costs and ongoing regulatory challenges. On Monday, Bank of America Securities analyst Wamsi Mohan reaffirmed a Buy rating on Apple, maintaining a price forecast of $235. As Apple prepares to release its fiscal third-quarter earnings on July 31, investor sentiment, as noted by Mohan, remains somewhat concerns include escalating tariff-related costs, scrutiny from the Department of Justice regarding Google's traffic acquisition cost (TAC) payments, ongoing headwinds for the App Store, and the perceived slow pace of Apple's advancements in artificial intelligence. Nevertheless, the impending earnings call is expected to shift focus towards gross margin trends and the projected recovery trajectory fueled by forthcoming product launches. For fiscal third-quarter 2025, Mohan projects revenue of $90.2 billion and earnings per share (EPS) of $1.45, figures that slightly surpass consensus Street estimates of $89.3 billion and $1.43, respectively. The analyst anticipates a gross margin of approximately 46.1%, aligning with Apple's guidance midpoint, despite the absorption of an estimated $900 million in tariff-related costs. Looking ahead to the fourth quarter, projections indicate revenue of $99.5 billion and EPS of $1.66, largely in line with Street expectations. While gross margin is projected to dip to 45% due to an additional $1 billion in tariff impact, Mohan views this quarter as a trough, with margins expected to improve heading into fiscal 2026. Mohan noted that a key driver of this expected rebound is the highly anticipated 'slim' iPhone, potentially branded as the iPhone 'Air,' which Apple is likely to launch in fall 2025. The analyst said that this model, expected to replace last year's Plus version, will reportedly have a 6.6-inch display, measure just 6mm thick, and carry a price tag $100 higher than the Plus. He noted that the shift in product mix toward higher average selling prices (ASP) is anticipated to drive gross margin expansion and boost replacement rates. Mohan modeled stronger iPhone sales in the September and December quarters on the back of this launch. On the Mac front, Apple is expected to benefit from the March launch of the new MacBook Air featuring the M4 chip, which provides improved performance at a reduced entry price of $999, or $100 lower than its predecessor, the analyst noted. He said this is expected to drive better-than-seasonal Mac revenue in the June and December quarters. Similarly, Mohan said the iPad segment could receive a boost from the expected fall launch of iPad Pro models equipped with the M5 chip. The analyst anticipates revenue growth in iPads driven by higher ASPs and product upgrades. Apple's Services segment continues to show steady growth, Mohan noted. For the third quarter, he expects Services revenue of $27.1 billion, up 2% quarter-over-quarter and 12% year-over-year. Substantial year-over-year gains are projected across the App Store (+12%), Licensing (+18%), Subscriptions (+9%), and Apple Pay (+18%), as per the analyst. For the fourth quarter, Services are projected to rise another 3% sequentially to $28 billion, again marking a 12% annual increase, with Licensing and Apple Pay both expected to grow over 20% year-over-year, Mohan noted. Mohan slightly raised estimates for the full fiscal year 2025. Revenue is now forecast at $409 billion (up from $408 billion), and EPS at $7.15 (up from $7.13). The price forecast remains $235, based on a 29x multiple of fiscal 2026 estimated EPS of $8.20. While Apple faces near-term margin pressure and regulatory noise, Mohan noted upside potential in new product cycles, improving Services momentum, and ASP-driven gross margin recovery, positioning the stock for renewed strength in the back half of the year. AAPL Price Action: Apple stock is trading higher by 0.10% to $214.06 at last check on Monday. Image via Shutterstock Latest Ratings for AAPL Date Firm Action From To Mar 2022 Barclays Maintains Equal-Weight Feb 2022 Tigress Financial Maintains Strong Buy Jan 2022 Credit Suisse Maintains Neutral View More Analyst Ratings for AAPL View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Can Apple's Slim iPhone And Cheaper Macs Reverse The 2025 Stock Slump? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
19 minutes ago
- Yahoo
Less than 2 years after Flexport bought Convoy's tech stack, it's being sold to DAT
The tech stack that was at the heart of now-defunct digital brokerage Convoy is on the move again, being sold to DAT in a move seen as significantly broadening that company's value proposition in the freight market. Freight forwarder Flexport, which acquired the tech stack from the remnants of Convoy less than two years ago, said Monday it is selling the product to DAT. When a company retreats from something it bought quickly, it is often a sign of defeat. (An old reference certainly, but the deal by Quaker Oats (NYSE: PEP) in the 90's to buy beverage maker Snapple for $1.4 billion, only to sell it back to its original owners three years later for $300 million, is considered the ultimate example of that sort of humbling failure). There is no sign that is the case with the quick flip of the Convoy tech stack. Ryan Petersen, the CEO of Flexport, said the return on the sale of the Convoy tech 'puts Flexport in an awesome place financially.' When Flexport purchased the Convoy tech stack in late 2023, the price on the transaction was reportedly $16 million, though neither company confirmed that price. The sale to DAT reportedly was made at a price near $250 million, though the companies declined to disclose the sales price. Besides the strong return on investment, Petersen, in a joint interview with DAT's CEO Jeff Clementz, said the presence of a powerful technology tool serving brokers that is supposed to be neutral could often complicate Flexport's primary business of freight forwarding. Neutral might not be neutral 'What we realized is that a neutral platform is not neutral,' Petersen said. 'We have a brokerage. We're a massive freight forwarding company.' The combination, he said, raised questions in the industry whether the Convoy platform truly could be seen as neutral. It's not the first time a company in the freight tech world has wrestled with the issue. When what is now Triumph Financial (NASDAQ: TFIN) bought HubTran to serve as an open loop auditing system for brokers and factoring companies, Triumph's management took great pains, repeatedly, to stress that its traditional factoring business could not get an inside look at what its factoring competitors who were using the legacy HubTran platform were doing. Petersen noted that the digital brokerage business that came with its 2023 acquisition of the Convoy tech stack will remain with Flexport. It processes about 100,000 loads per year, he said, 98% of which are completed with no human involvement. It will also continue to use the Convoy system even though it will now be owned by DAT, according to Petersen. 'On day one, we will be their biggest customer and we hope to continue to be their biggest customer,' he said. A widening range of offerings from DAT For DAT, the purchase is possibly transformative. In the past several months, besides promoting Clementz to CEO, it has purchased visibility provider Trucker Tools and payments platform Outgo. (Clementz said DAT did not pursue an acquisition of the Convoy tech stack when it was first offered for sale as part of the Convoy bankruptcy). With the purchase of the Convoy tech stack, it has now vastly increased its range of offerings to the freight sector with capabilities that have moved well beyond its traditional load board. Clementz, in his interview with FreightWaves, laid out what might be considered the three segments of how loads are offered into the market. About 50% of broker loads, he said, get moved through a broker's private network. But after that, he said, 'you might go to other load boards,' adding that DAT is the 'backstop you need to go to, ultimately, especially in the last 24 to 48 hours.' If brokers choose to use their private network, Clementz said, that also may come with a decision to put the load on what will now be DAT's Convoy platform, 'because I don't have to touch it. And if it all works, fantastic. If not, then I'll intervene and I'll work it through the load board.' Ultimately, he said, DAT believes the Convoy platform, with its power of automation to get shipper and carrier together, will be the first place that loads will be placed. But from there, Clementz said, if a match isn't made it can 'waterfall' down to the DAT platform. 'We think we can go directly from the shipper to the TMS (transportation management system) and into the Convoy platform directly and then move to the load board,' Clementz said. The Convoy tech team–which is coming over to DAT in the deal–already has been working with TMS providers to have loads in a TMS populate into the Convoy platform automatically. Load board will continue to be dominant for awhile But change isn't overnight. 'We actually think the load board will be the primary use case for quite a long time,' Clementz said. Fraud prevention is expected to be a major selling point of the broader DAT product offering, Clementz said. DAT already was set to launch a fraud management solution before the deal with Flexport. But the Convoy system long had been admired for its own fraud prevention tools, Clementz said. Building it into the DAT platform on top of its own capabilities 'will really make DAT the safest platform,' he added. There will be no upfront fees for DAT users to sign up to use the Convoy platform, Clementz said. Fees will be transactional, so a DAT user can access the Convoy system with no payments unless a transaction is completed. But that fact also is a driver to the deal, according to Clementz. Bringing in new users on to the system has an extremely low customer acquisition cost, which often goes by the acronym CAC, and that may slow some early adoption, he added. 'I think we will have more demand than we can handle for onboarding, so we'll probably have to create a wait list because there's no cost to sign up for this,' Clementz said. 'It will take time for us to integrate accounts, set them up and get them going.' DAT is a unit of publicly-traded Roper Technologies. (NASDAQ: ROP) In the company's latest conference call with analysts, president and CEO Laurence Hunn said DAT's financial performance in the second quarter 'was solid…and had strong (average revenue per unit improvements).' DAT data is not broken out separately in the Roper earnings. Hunn also said DAT had made 'significant progress' integrating Trucker Tools into its system. More articles by John Kingston Yet another broker liability case, this time in the Fifth Circuit, adds to the growing mix Ryder's used vehicle numbers show a bullish corner: tractor sales Five takeaways from the State of Freight for July: What earnings and the indices are saying about the market The post Less than 2 years after Flexport bought Convoy's tech stack, it's being sold to DAT appeared first on FreightWaves.
Yahoo
an hour ago
- Yahoo
Bell Canada and Cohere strike AI partnership to bolster domestic data sovereignty
-- BCE (NYSE:BCE) Inc (TSX:BCE) and Toronto-based AI firm Cohere have announced a strategic partnership aimed at delivering sovereign, enterprise-grade AI solutions to Canadian governments and businesses. Under the agreement, Bell Canada will serve as Cohere's preferred infrastructure provider in Canada, while Cohere becomes Bell's go-to supplier for large language models (LLMs) and agentic AI platforms. Cohere's AI capabilities, including its North agentic AI platform, will now be integrated into Bell AI Fabric, a multi-layered ecosystem comprising data centres, fibre infrastructure, cloud software, and AI applications. The partnership enables Canadian organizations to access state-of-the-art AI tools without compromising data sovereignty or security. "At a critical time for Canada, we're proud to partner with Cohere to create a sovereign, full-stack AI solution, custom-built to support Canadian government and business," said Mirko Bibic, President and CEO of Bell Canada. "Working together, we will both transform Canadian businesses through cutting edge AI capabilities, while ensuring that the data remains secure and within Canada." North, Cohere's agentic AI development platform, will be made available across Bell's enterprise and government customer base, enabling efficient deployment of custom AI agents. The platform is designed to preserve Canadian data privacy standards while eliminating the need for customers to manage complex AI infrastructure. Cohere co-founder and CEO Aidan Gomez called the collaboration a significant step for Canadian AI adoption. 'Our partnership with Bell Canada will provide the Canadian government and enterprises with world-class options for sovereign, security-first AI,' he said. 'This has the potential to be truly transformative for organizations looking to massively increase their productivity and efficiency without any compromise on data security and privacy.' Bell plans to integrate North internally to empower employees in building AI agents that utilize proprietary data for operational improvements. Lessons learned internally will inform Bell's tech services brand, Ateko, as it aids customers in their AI deployments. The government's endorsement further signals growing confidence in domestic AI capabilities. 'These companies exemplify the spirit of Canadian ingenuity and are solidifying Canada's sovereign AI capabilities,' said Evan Solomon, Minister of Artificial Intelligence and Digital Innovation. 'This partnership will help strengthen our position on the global stage and pave the way for a brighter, more advanced future for the Canadian economy.' Related articles Bell Canada and Cohere strike AI partnership to bolster domestic data sovereignty Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names If Powell goes, does Fed trust go with him?
