Apex Clearing To List On NYSE Through Merger With SPAC Northern Star Investment Corp. II: What You Need To Know

A SPAC run by former Cosmopolitan editor-in-chief Joanna Coles announced a planned merger with Apex Clearing Holdings on Monday.

The SPAC Deal: Apex Clearing Holdings will go public via a merger with Northern Star Investment Corp. II NSTB in a deal valuing the company at $4.7 billion. Apex will list on the NYSE under the ticker "APX."

The SPAC deal is expected to provide up to $850 million in gross cash proceeds, including a $450-million fully committed private investment in public equity (PIPE) backed by investors such as Fidelity Management & Research and Baron Capital.

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About Apex: Apex is a fintech leader that provides fast, secure and reliable digital custody and clearing solutions for more than 200 clients representing 13 million customers. The company also provides real-time cryptocurrency solutions and serves more than 1 million crypto accounts.

Apex’s diverse client base includes online brokerages, traditional wealth managers, professional traders and consumer brands. The company has about $100 billion in assets under custody. That number has increased by more than $14 billion year-to-date in 2021.

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In a press release, Apex said 3.2 million of its 13 million customer accounts were opened in the first two months of 2021.

Apex CEO William Capuzzi and Apex President Tricia Rothschild will continue to serve in their roles at the new public company. Coles will serve on the combined company’s board of directors.

Financials: Apex generated unaudited operating revenue of about $236 million and unaudited adjusted EBITDA of about $86 million in fiscal 2020. Apex reported fiscal 2020 profit before tax of $74.8 million.

The $450-million private placement of common stock led by Fidelity Management is priced at $10 per share. All current Apex shareholders and management will be rolling over 100% of their equity into the new company.

NSTB Price Action: Shares of Northern Star Investment Corp II were trading 0.27% higher at $10.98 at last check Monday.