4 Major FinTech Acquisitions that occurred in Europe in June 2024

By Gloria Methri

The FinTech sector in 2023 witnessed a slowdown in deal activity, with companies around the world adopting a cautious approach to mergers and acquisitions (M&A). In the first half of the year, only 128 M&A deals were recorded, compared to 248 and 188 in the first and second halves of 2022.

Despite the contraction, firms remain interested in exploring options and are looking forward to potential deals when market conditions improve. According to S&P Global Market Intelligence, several FinTech segments, including payments, treasury management software, and corporate carve-outs, are attracting merger and acquisition (M&A) interest.

Let’s look at four such announcements made this month:

• Klarna sells its Checkout solution

Klarna is selling its online checkout solution to a group of investors led by Kamjar Hajabdolahi, CEO & Founding Partner at BLQ Invest. The sale of KCO will allow Klarna to focus on its core business and flexible payment methods, which it offers in conjunction with multiple service providers.

Launched in 2012, Klarna Checkout works directly with merchants to help them offer its BNPL payment options. The business is successful in the Nordics, with a 20% market share that rose to 40% in Sweden.

• Ageras acquires FinTech Shine

Ageras has signed an exclusive agreement with Societe Generale to acquire French SME FinTech Shine. With the acquisition, Ageras aims to strengthen its position as a provider of banking and accounting software for SMEs, expanding its foothold in France. The region has been a core market for the Danish FinTech since its entry in 2021 with the acquisition of pan-European invoicing software Zervant.

• Natwest buys Sainsbury’s banking business

Natwest Group is set to buy the retail banking business of Sainsbury’s, as the supermarket company withdraws from the sector to focus on grocery. The deal, worth $3.2 billion, comprises Sainsbury’s outstanding credit card, unsecured personal loan and saving accounts.

The move will increase NatWest’s assets and customer accounts, aligning with the bank’s strategy to expand its retail banking operations.

• Shift4 buys Vectron and Revel Systems

Shift4, the specialist in integrated payments and commerce technology, has acquired a majority stake in Vectron Systems AG, one of the largest European suppliers of point-of-sale (POS) systems to the restaurant and hospitality verticals.

FinTech Shift4 has also completed its previously announced acquisition of Revel Systems. Revel has over 18,000 merchant locations across the US and internationally, representing a $17 billion payment opportunity.