Three Firms Steer SoFi’s Merger With Facebook Alum’s SPAC

Jan. 11, 2021, 11:55 AM

Goodwin Procter and Wachtell, Lipton, Rosen & Katz are advising online financial services company Social Finance Inc. on its $8.7 billion go-public merger with a special purpose acquisition company founded and led by former Facebook Inc. executive Chamath Palihapitiya.

Skadden, Arps, is advising the SPAC, Social Capital Hedosophia Holdings Corp. V, a partnership between investment firms Social Capital and Hedosophia.

The transaction is expected to bring in as much as $2.4 billion in cash proceeds, including $1.2 billion via a PIPE, or private investment in public equity, according to a statement.

Social Finance Inc., which is known as SoFi, says it has over 1.8 million consumer members that use its app for services, including loan refinancing, mortgages, personal loans, credit cards, insurance, investing and deposit accounts.

SoFi also owns Galileo, a business platform offering technology infrastructure services to financial services providers.

“SoFi’s innovative, member-first platform has demystified financial services for millions of Americans,” Palihapitiya said.

To contact the correspondent on this story: Rick Mitchell in Paris at rmitchell@correspondent.bloomberglaw.com
To contact the editor on this story: Chris Opfer in New York at copfer@bloomberglaw.com
John Hughes in Washington at jhughes@bloombergindustry.com

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