1)
$BFT - @PlugIntoPaysafe DD Thread
Summary:
- #1 in USA iGaming
- Fintech appeal
- iGaming future growth in USA
- Bill Foley to be chairman of Paysafe board, has history of creating value
- Established company w/ real revenues today
https://www.cnbc.com/video/2020/12/07/bill-foley-to-take-blackstones-paysafe-public-in-9-billion-spac-deal.html
$BFT - @PlugIntoPaysafe DD Thread
Summary:
- #1 in USA iGaming
- Fintech appeal
- iGaming future growth in USA
- Bill Foley to be chairman of Paysafe board, has history of creating value
- Established company w/ real revenues today
https://www.cnbc.com/video/2020/12/07/bill-foley-to-take-blackstones-paysafe-public-in-9-billion-spac-deal.html
2)
Management:
- CEO Phil McHugh strong banking background
- Bill Foley future chairman of board, an incredible valuable to Paysafe deal
- Recently hired new SVP of iGaming, coming from $PENN and working on the Barstool Sportsbook
https://www.yogonet.com/international/noticias/2020/11/27/55607-paysafe-appoints-scot-mcclintic-as-svp-igaming-product--strategy
Management:
- CEO Phil McHugh strong banking background
- Bill Foley future chairman of board, an incredible valuable to Paysafe deal
- Recently hired new SVP of iGaming, coming from $PENN and working on the Barstool Sportsbook
https://www.yogonet.com/international/noticias/2020/11/27/55607-paysafe-appoints-scot-mcclintic-as-svp-igaming-product--strategy
3)
Bill Foley:
- Owner of NHL team Las Vegas Golden Knights, $BFT, $WPF, $TREB
- Impressive portfolio of creating value, most notably Fidelity Info Services $FIS
- Wants to dominate iGaming and Vegas Based operations w/ Paysafe
- Gets 4% of company
https://www.reviewjournal.com/business/casinos-gaming/golden-knights-bill-foley-gets-closer-to-gaming-industry-with-9b-deal-2208073/
Bill Foley:
- Owner of NHL team Las Vegas Golden Knights, $BFT, $WPF, $TREB
- Impressive portfolio of creating value, most notably Fidelity Info Services $FIS
- Wants to dominate iGaming and Vegas Based operations w/ Paysafe
- Gets 4% of company
https://www.reviewjournal.com/business/casinos-gaming/golden-knights-bill-foley-gets-closer-to-gaming-industry-with-9b-deal-2208073/
4)
Paysafe Suite Overview:
- Both B2B & B2C solutions
- Digital Wallet
- $DKNG, Betfair, William Hill customers
- eCash
- Fortnite, Twitch, Spotify customers
- Integrated Processing
- $DKNG, BetWildwood (new), Mindbody customers
https://www.casinocitytimes.com/news/article/paysafe-partners-with-colorados-betwildwood-238390
Paysafe Suite Overview:
- Both B2B & B2C solutions
- Digital Wallet
- $DKNG, Betfair, William Hill customers
- eCash
- Fortnite, Twitch, Spotify customers
- Integrated Processing
- $DKNG, BetWildwood (new), Mindbody customers
https://www.casinocitytimes.com/news/article/paysafe-partners-with-colorados-betwildwood-238390
5)
M&A Future:
- Unity Platform to consolidate suite, automate underwriting, Single API use
- In the process migrating eCash suite to AWS cloud services
- Single wallet platform across @skrill & @NETELLER
- Long term goal of being one-stop-shop for payments w/ Fintech
M&A Future:
- Unity Platform to consolidate suite, automate underwriting, Single API use
- In the process migrating eCash suite to AWS cloud services
- Single wallet platform across @skrill & @NETELLER
- Long term goal of being one-stop-shop for payments w/ Fintech
6)
Endorsements:
- @grassosteve of Fast Money on CNBC is longtime fan of $BFT, has said "Im looking for a triple"
- @jimcramer recently said on Mad Money "this one works"
- Plenty of articles written about $BFT attractive future
https://seekingalpha.com/article/4396431-foley-trasimene-acquisition-and-paysafe-combination https://twitter.com/i/status/1352072132847677441
Endorsements:
- @grassosteve of Fast Money on CNBC is longtime fan of $BFT, has said "Im looking for a triple"
- @jimcramer recently said on Mad Money "this one works"
- Plenty of articles written about $BFT attractive future
https://seekingalpha.com/article/4396431-foley-trasimene-acquisition-and-paysafe-combination https://twitter.com/i/status/1352072132847677441
7)
Digital Wallet:
- Includes @skrill @NETELLER @IncomeAccess
- Crypto access w/ @coinbase
- Further vertical focus for iGaming service
- $441m 2021E rev
- $23.5B 2021E vol
- 14% '20-'23 CAGR
https://www.paysafe.com/us-en/paysafegroup/news/detail/paysafe-issues-coinbase-s-new-visa-debit-card-enabling-easier-cryptocurrency-spending/
Digital Wallet:
- Includes @skrill @NETELLER @IncomeAccess
- Crypto access w/ @coinbase
- Further vertical focus for iGaming service
- $441m 2021E rev
- $23.5B 2021E vol
- 14% '20-'23 CAGR
https://www.paysafe.com/us-en/paysafegroup/news/detail/paysafe-issues-coinbase-s-new-visa-debit-card-enabling-easier-cryptocurrency-spending/
8)
eCash:
- Includes @paysafecard and @paysafecash
- Pre-bought vouchers to upload onto services like Amazon, Fortnite, Google, Spotify, Steam, Twitch
- Highest take rate
- $318M '21E rev
- $4.7B '21E vol
- 8% '20-23 CAGR
https://www.paysafecard.com/en/corporate/press/press-releases/detail/paysafecard-teams-up-with-spotify-1/
eCash:
- Includes @paysafecard and @paysafecash
- Pre-bought vouchers to upload onto services like Amazon, Fortnite, Google, Spotify, Steam, Twitch
- Highest take rate
- $318M '21E rev
- $4.7B '21E vol
- 8% '20-23 CAGR
https://www.paysafecard.com/en/corporate/press/press-releases/detail/paysafecard-teams-up-with-spotify-1/
9)
Processing:
- eCommerce focused, B2C
- Leading iGaming platform with unique single API integration
- $DKNG partnership
- Can process across US, Canada, Europe
- Clover POS reseller
- $764m '21E rev
- $74.8B '21E vol
- 10% '20E-'23E CAGR
https://www.paysafe.com/us-en/paysafegroup/news/detail/paysafe-provides-new-payment-options-for-draftkings-in-europe2/
Processing:
- eCommerce focused, B2C
- Leading iGaming platform with unique single API integration
- $DKNG partnership
- Can process across US, Canada, Europe
- Clover POS reseller
- $764m '21E rev
- $74.8B '21E vol
- 10% '20E-'23E CAGR
https://www.paysafe.com/us-en/paysafegroup/news/detail/paysafe-provides-new-payment-options-for-draftkings-in-europe2/
10)
Financials:
- 13% rev growth over 2018-19
- 11% rev '20E-'23E CAGR
- $1.81B 2023E rev
- Income diversified between regions and segments
- These numbers can change based on USA iGaming market expansion
Financials:
- 13% rev growth over 2018-19
- 11% rev '20E-'23E CAGR
- $1.81B 2023E rev
- Income diversified between regions and segments
- These numbers can change based on USA iGaming market expansion
11)
Pro-Forma Details + Valuation:
- 22.5% of company going public
- $6.9B in uses
- $1.11B in debt paydown
- $9B Pro-Forma Valuation @ $10.00
- $17B Pro-Forma Valuation @ 18.89 1/22 close price
Pro-Forma Details + Valuation:
- 22.5% of company going public
- $6.9B in uses
- $1.11B in debt paydown
- $9B Pro-Forma Valuation @ $10.00
- $17B Pro-Forma Valuation @ 18.89 1/22 close price
12)
$BFT Final Thoughts:
- #Fintech incredibly hot segment
- Future iGaming, Crypto growth exposure
- Bill Foley partnership key for Paysafe future
- M&A plan will be key to further vertically integrate Paysafe suite https://twitter.com/i/status/1350246892685426692
$BFT Final Thoughts:
- #Fintech incredibly hot segment
- Future iGaming, Crypto growth exposure
- Bill Foley partnership key for Paysafe future
- M&A plan will be key to further vertically integrate Paysafe suite https://twitter.com/i/status/1350246892685426692
13)
My Outlook:
- 2nd largest position currently (12.95 avg)
- LT hold, Roth hold
- I highly value Foley ties in deal
- Future US iGaming federal legalization inevitable
- Warrants post-merger to redeem
- Not married to holding full through merger due to lower growth proj.
My Outlook:
- 2nd largest position currently (12.95 avg)
- LT hold, Roth hold
- I highly value Foley ties in deal
- Future US iGaming federal legalization inevitable
- Warrants post-merger to redeem
- Not married to holding full through merger due to lower growth proj.
14)
Link Dump
Investor Presentation - https://www.sec.gov/Archives/edgar/data/1818355/000119312520311998/d54063d425.htm
8-K - https://www.sec.gov/Archives/edgar/data/1818355/000119312520311171/d93617d8k.htm
Press Release of Deal-
https://www.sec.gov/Archives/edgar/data/1818355/000119312520311171/d93617dex991.htm
https://news.worldcasinodirectory.com/paysafe-group-holdings-limited-set-to-return-to-the-public-realm-85883
https://www.nasdaq.com/articles/foley-trasimene-acquisition-ii-is-a-good-bet-on-both-paysafe-and-bill-foley-2021-01-20
https://www.businesswire.com/news/home/20210114005157/en/Paysafe-Payments-crucial-to-ongoing-growth-of-US-online-sports-betting-market
https://www.casinocitytimes.com/news/article/paysafe-releases-latest-all-the-ways-players-pay-report-238458
Link Dump
Investor Presentation - https://www.sec.gov/Archives/edgar/data/1818355/000119312520311998/d54063d425.htm
8-K - https://www.sec.gov/Archives/edgar/data/1818355/000119312520311171/d93617d8k.htm
Press Release of Deal-
https://www.sec.gov/Archives/edgar/data/1818355/000119312520311171/d93617dex991.htm
https://news.worldcasinodirectory.com/paysafe-group-holdings-limited-set-to-return-to-the-public-realm-85883
https://www.nasdaq.com/articles/foley-trasimene-acquisition-ii-is-a-good-bet-on-both-paysafe-and-bill-foley-2021-01-20
https://www.businesswire.com/news/home/20210114005157/en/Paysafe-Payments-crucial-to-ongoing-growth-of-US-online-sports-betting-market
https://www.casinocitytimes.com/news/article/paysafe-releases-latest-all-the-ways-players-pay-report-238458