A look at the top 10 fintech mergers and acquisitions so far this year
FinTech is a booming industry. It has been witnessing a significant rise for the last few years. According to the Global Fintech Adoption Index 2019, fintech adoption was doubling every two years pre-pandemic, growing from 16% in 2015 to 64% in 2019. When it comes to fintech mergers and acquisitions, there has been a steady flow even in the onslaught of COVID-19. Through successful M&A deals, companies can expedite growth, fuel business revenue, and take into account new employees and new ways of doing business. There has been a growing number of fintech M&A deals that took place in 2021.
Here’s a look at the top 10 fintech mergers and acquisitions in 2021.
Mogo is a financial technology company that offers customers solutions to manage and control their finances through its mobile app. In March, the company has entered into a binding letter of intent to acquire 100% of Moka.ai, Canada’s leading saving and investing apps. The proposed acquisition will intensify Mogo’s member base by over 40 percent to over 1.7 million and expand its wealth offering to include saving and investing products. The terms of the deal were announced in a CA$64 million all-stock deal.
Thoma Bravo, a leading private equity investment firm focused on the software and technology-enabled services sectors, has announced to acquire Calypso Technology. Calypso Technology is a leading provider of cross-asset front-to-back technology solutions for financial markets, from international private equity group Bridgepoint and global growth investor Summit Partners. The deal, which is subject to customary regulatory approvals, is expected to close in the second quarter of 2021. The financial terms of the transaction were not disclosed.
Technisys, the leading provider of next-gen digital banking platform, has acquired Kona, a conversational AI-powered innovator in the banking industry. The acquisition will fuel Technisys’s plan to expand its next-gen digital and core banking platform’s capabilities and further redefines the customer experience. With Kona’s conversational AI capabilities, Technisys will continue to empower financial institutions to deliver differentiation via tailored product offerings that address the unique needs of each and every customer, dynamically, in whatever channel the customer chooses, according to Mike Santos, Technisys CEO and co-founder.
The leading provider of accounts payable (AP) and payment automation solutions for the middle market AvidXchange has acquired Core Associates, the makers of TimberScan, and complementary AP solutions trusted by more than 30,000 users nationwide. The acquisition has made AvidXchange one of the foremost AP automation providers for the construction market, offering the only complete purchase-to-pay solution for Sage 300 CRE (formerly Timberline), Sage 100 Contractor, Acumatica, and Sage Intacct Construction accounting systems.
Quadient, a fintech company that helps businesses create meaningful customer connections through digital and physical channels, has announced the signing of a definitive agreement to acquire Beanworks. Beanworks is a Vancouver, Canada-based fast-growing market leader specializing in Software as a Service (SaaS) Accounts Payable Automation solutions.
Shift4 Payments, a leading provider of integrated payment processing solutions, bought VenueNext, a leader in next-generation mobile commerce, point-of-sale, and loyalty solutions for venues. This acquisition powers Shift4’s presence and capabilities in many large and growing verticals such as stadiums and arenas. It will also help expand the company’s total addressable market with entry into entertainment, universities, theme parks, airports, and other verticals.
Equifax, a global data, analytics, and technology company, has acquired AccountScore, a transaction analytics firm to boost its Open Banking and insights capabilities. The acquisition will enable Equifax to enhance its consumer and commercial product offerings, combining traditional credit bureau information held by Equifax with bank transaction data, facilitated by AccountScore.
The digital personal finance company SoFi has signed a definitive agreement to acquire Golden Pacific Bancorp, Inc, for US$22.3 million. The proposed acquisition is a key strategic step in SoFi’s path to obtaining a national bank charter. As a result of the proposed acquisition, SoFi will switch its current de novo bank application to a change of control application.
NCR Corporation, a global enterprise technology provider, and Cardtronics, the world’s largest non-bank ATM operator and service provider, have entered into a definitive agreement. Under this agreement, NCR will acquire all outstanding shares of Cardtronics for US$39 per share in an all-cash transaction with an enterprise value of approximately US$2.5 billion, including debt. The transaction has been approved by the Boards of Directors of both companies.
Wealth management technology provider Addepar has announced the acquisition of Real Capital Innovation (RCI) to help clients make better investment decisions. The acquisition brings together two teams with deep roots in technology and data-fuelled innovation and a passion for and understanding of financial markets and investment managemen