Fintech company and USDC issuer Circle has terminated a business combination deal with special purpose acquisition company (SPAC) Concord Acquisition Corp., but it has not scrapped its plan to go public.
Circle’s announcement is the latest in the growing list of SPAC deals that have failed to materialize.
Circle and Concord Go Separate Ways
Circle announced the termination of the deal in a press release on Monday (December 5, 2022). The decision was mutual between both parties, with the termination approved by Circle’s and Concord’s boards of directors.
The business combination proposal was first announced in July 2021 when Circle was valued at $4.5 billion. The deal was later amended in February 2022 when the firm’s valuation doubled to $9 billion, with the USDC issuer looking to go public by December 2022.
Although the deal has fallen through, Circle co-founder and CEO Jeremy Allaire said the firm still has plans to be a public company. The exec added:

“Concord has been a strong partner and has added value throughout this process, and we will continue to benefit from the advice and support of Bob Diamond and the broader Concord team. We are disappointed the proposed transaction timed out, however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.”

Concord had until December 10, 2022, to complete the business combination, with an option for extension till the end of January 2023 via a shareholder vote, if the Securities and Exchange Commission (SEC) “declared the S-4 registration statement for the business combination effective.” However, at the time of the press release, the SEC has made no such declaration.
Meanwhile, Circle outlined its performance in Q3 2022, stating a revenue of $274 million, $43 million in net income, and unrestricted cash worth $400 million.
SPAC Deals Failing Recently
The latest development reflects the recent failures in merger and acquisition deals. As previously reported by CryptoPotato , Fintech Acquisition Corp ended its merger agreement with crypto exchange eToro.
Another SPAC, 10x Capital Venture Acquisition Corp, also terminated a $1.25 billion merger deal with crypto mining company Prime Blockchain. The decision was mutual between both companies.
The crypto SPAC is part of the general failures in blank check deals in the broader financial sector. According to Bloomberg, over 40 SPAC deals have been canceled as of August 2022.
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