Merger VPCC

Dave, the banking app, goes public via merger with SPAC

, SPAC research

Dave, the banking app on a mission to create financial opportunity that advances America’s collective potential, and VPCC sponsored by Victory Park Capital, announced that they have entered into a definitive agreement for a business combination that will result in Dave becoming a publicly traded company listed under the ticker symbol “DAVE,” with an expected pro forma, fully-diluted equity value of approximately $4bn, assuming no redemptions.

Launched in 2017 as an app to help Americans avoid billions of dollars in overdraft fees charged by traditional banks, Dave is now a financial platform helping 10 million customers with banking, financial insights, overdraft protection, building credit and finding side gigsDave aims to help foster the financial health of its members while also giving back to the community, having pledged over 13mm meals to Feeding America since launch. To date, Dave estimates that it has helped customers avoid nearly $1bn in overdraft fees through its flagship feature, ExtraCash, and earn over $200mm in income through its gig-economy job board, Side Hustle.

Upon completion of the transaction, the combined company is expected to have a fully-diluted equity value on a pro forma basis of approximately $4bn, assuming no redemptions. It is expected to result in over $375mm of cash on the combined company’s balance sheet, reflecting a contribution of up to $254mm of cash held in VPCC’s trust account (assuming none of VPCC’s stockholders redeem their shares) and a $210mm concurrent private placement (PIPE) led by Tiger Global Management with additional participation from Wellington Management and Corbin Capital Partners.

Centerview Partners LLC is serving as exclusive financial advisor and Orrick, Herrington & Sutcliffe LLP is serving as legal advisor to Dave. Citigroup and Jefferies are serving as capital markets advisors to VPCC and co-placement agents on the PIPE. White & Case LLP is serving as legal advisor to VPCC.

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