The Firm is representing Covalto Ltd. in connection with its announced business combination with LIV Capital Acquisition Corp. II, a special purpose acquisition company sponsored by Mexico City-based LIV Capital.
Upon closing of the transaction, Covalto expects to list on Nasdaq under the symbol “CVTO” and would become the first Mexican fintech to publicly list on a U.S. stock exchange. The transaction will be funded by a combination of committed financing and remaining cash-in-trust after giving effect to redemptions from existing LIV stockholders. Closing of the business combination is subject to regulatory approvals and other conditions.
Covalto is a leading digital banking and services platform for SMEs in Mexico, and in 2021, became the first Mexican fintech to acquire a regulated bank. The transaction reflects an estimated pro-forma valuation for Covalto of approximately $547 million.
The Simpson Thacher team includes S. Todd Crider, Joshua Bernard, Laura Ribero, Monica Yrrarazabal and Juan Pablo Guzman (Corporate); Andrew B. Purcell, Jasmine Hay and Ruoxi Zhang (Tax); and Larry Moss and Ryan Stott (Employee Benefits). Summer Associates Luis Aguilera and Hayley Smith also provided invaluable assistance.