Latest FinTech Acquisitions

FinTech companies are high on demand these days with the rise of digitalization. The pandemic also accelerated the FinTech firms to boost their growth in order to attain their customer needs and demands. And so many FinTech firms are also showing great interest in FinTech acquisitions to benefit in all ways.  Here are the latest FinTech acquisitions in 2021 that you must know.

Astorg and Bridgepoint 

Astorg and Bridgepoint have acquired Fenergo Group from its Founder  who set up the company in 2009, as well as the management team of private equity firm Insight Partners, one that invested in Fernergo in 2015 and various others with a minority stake in the company. Fenergo’s API-first ecosystem of channels, systems and data providers enable financial institutions to offer a truly frictionless customer experience. Fenergo operates in a specific part of the highly regulated financial services. In the financial year of 2021, Fenergo’s revenue increased by 17% to US$ 107 million. The advisors for Fenergo are UBS, Willkie Far & Gallagher, William Fry, and PwC. And for Bridgepoint and Astorg the advisors are William Blair, Credit Suisse, Torch Partners, Paul Hastings, Arma Partners, Allen & Overy, Ernst & Young, and GreySpark Partners.

Square- Afterpay 

Square builds simple tools to help people participate in the economy. Afterpay is a leading Buy Now Pay Later service provider which announced to enter into a Scheme Implementation Deed under which Square stated to acquire all of the shares in Afterpay. But the transaction is likely to be done by the first quarter of 2022 with certain closing conditions. The transaction is estimated to be about US$ 29 billion. This acquisition will benefit both the companies to deliver compelling financial products and services by expanding access to more consumers. With this acquisition Afterpay aims to help raise the strategic priorities for its Seller and Cash App ecosystem.

U.S Bank-PFM Asset Management 

The U.S. Bank has announced entering into an agreement to buy PFM Asset Management under its subsidiary, U.S Bancorp Asset Management.  According to the agreement, PFM Asset Management will continue to operate as a diverse and separate entity. It has a value of about US$ 325 billion. The deal is expected to close by the year ending. PFM’s financial advisory business is not part of the acquisition and will also operate independently.

Razorpay-TERA Finlabs 

Razorpay acquired TERS Finlabs providing technology for aiding risk and capital solutions to enable financing solutions for businesses. TERA Finlabs is an Indian subsidiary of UK-based digital lender GAIN Credit. This acquisition can provide better services and attain the credit demands of over 10,000 businesses in India by the next year. This is the firm’s third acquisition after Thirdwatch. The TERA Finlab’s robust end-to-end platform will help in enabling new businesses to build profitable credits. Razorpay is backed by investors like GIC, Tiger Global, Sequoia Capital India and MasterCard.

Visa-Currencycloud 

Visa had agreed to buy the British payments start-up Currencycloud in its second major fintech acquisition of 2021. The deal of Currencycloud is worth US$ 962 million. Visa stated that the sum it’s paying Currencycloud will be reduced by the outstanding equity that it owns already. Currencycloud sells software for banks and fintech firms to enable cross-border payments. With this acquisition Visa can support its clients and partners to further reduce the pains of cross-border payments and improve the customer experience.

Circle- Concord Acquisition Corp 

Circle is a global FinTech firm that provides payments and treasury infrastructure for digital businesses. It has announced an agreement with Concord Acquisition Corp which is a publicly traded special purpose acquisition company.  An Irish holding company will acquire Concord and Circle. The transaction value is about US$ 4.5billion. Circle is also the principal operator for the fast growing digital currency USD Coin (USDC).

Solarisbank-Contis 

Solarisbank, a Berlin startup that provides financial services to build end-user-facing products has announced plans to acquire one of its competitors, Contis. The agreement was backed by Decisive Capital Management, a Swiss firm, Wefox, Yabeo Capital, BBVA, Vulcan Capital and HV Capital.