Financial Technology Mergers & Acquisitions announcements (America): February 2021

By Pavithra R

Financial services are being transformed by technology  changes that are making it possible for firms do more and own less. The article lists selected FinTech M&A announcements made in February.

Payoneer – FTAC Olympus Acquisition Corporation 

Payoneer, the digital payment platform empowering businesses to grow globally, and FTAC Olympus Acquisition Corp. a special purpose acquisition company, has announced entering into a definitive agreement and plan of reorganization.

Under the agreement, on closing of the reorganization the newly created holding company will be renamed Payoneer Global, and the combined company will operate as Payoneer, a U.S. publicly listed entity with an estimated enterprise value of approx. $3.3bn at closing, based on current assumptions.

Payoneer’s management team will continue to lead the company. It has been backed by investments from TCV, Susquehanna Growth Equity (SGE), Viola Ventures, Wellington Management, Nyca Partners, Temasek and more.

NCR – Terafina

NCR Corporation, a global enterprise technology provider for the financial, retail and hospitality industries, has announced the acquisition of Terafina, a software-as-a-service product company providing digital account opening services and onboarding across digital, branch and call center channels.

Through the acquisition, NCR is planning to expand its sales and marketing capabilities in its Digital First Banking platform to drive revenue growth across consumer and business market segments. The acquisition is consistent with NCR’s strategy to acquire early-stage software companies to enhance product capabilities and extend its leadership in the vertical industries it serves.

Integrating the customer onboarding experience into the NCR Digital First platform is expected to drive higher customer satisfaction and increase the number of products that a customer will open. This combination will enable FIs to build stronger customer relationships, strengthen brand loyalty, and delight customers across their digital and physical channels.

MoneyLion – Fusion Acquisition Corp. 

MoneyLion, the provider of leading digital finance platform, in early February announced entering into a definitive agreement Fusion Acquisition, under which MoneyLion will become a publicly listed company.

“A public listing enhances our ability to scale more quickly and continue to innovate so that we can help more people take control of their finances and achieve their life goals,” said Dee Choubey, CEO and co-founder of MoneyLion.

MoneyLion leverages technology to empower hard-working Americans to take control of their finances and achieve their life goals. Its data-driven, digital financial platform provides access to a comprehensive suite of products that help members bank, save, invest, borrow, and grow in a single app. Its products include:

• RoarMoney: Modern mobile banking that enables members to get paid up to 2 days early and manage their everyday spending, with no hidden fees, cashback rewards, and robust security controls.
• Investing: Full-featured, automated investing tools with various investment options, including ESG portfolios, helping members to invest in strategies that match their personal preferences. 
• Instacash:Interest-free salary advances with no monthly fees to help members bridge short-term timing gaps in their income. 
• Credit Builder Plus: A program designed to help members build or rebuild their credit. 

LexisNexis Risk – Accuity

LexisNexis Risk Solutions, the global data analytics provider, has announced its merger with Accuity, creating one of the largest global providers of financial crime compliance solutions, operating in more than 100 countries.

Under the agreement, Accuity will become part of LexisNexis Risk Solutions group of companies. Both businesses are RELX companies and are leaders in their respective focus areas in the global financial crime compliance sector with complementary solutions. 

LexisNexis Risk Solutions provide information-based analytics, decision tools and insights that help businesses and governmental entities reduce risk and improve decisions to benefit people globally. Accuity powers compliant and assured client transactions to help build an interconnected and trusted financial ecosystem through global payment services, financial crime screening, and financial asset verification and fraud prevention solutions for government benefit programs.

The merger is expected to provide various benefits, including: 

• The combined solutions further leverage and extend high-value data and analytic capabilities from both companies to provide comprehensive risk management and payments solutions.
• Future integrated offerings better addressing critical customer needs across Know Your Customer (KYC), anti-money laundering(AML) and payments by providing more comprehensive global solutions to address the complex and evolving methods criminals use to commit financial crimes.
• Combining 2 differentiated and distinct data sets will enrich a joint product suite to drive more excellent customer value by enabling more actionable decisions through effective customer portfolio monitoring.
• The combined organization will create a large global provider of compliance risk solutions.

Incapital – 280 CapMarkets

Incapital, a leading underwriter and distributor of fixed income and market-linked securities, has announced entering into a merger agreement with 280 CapMarkets, a technology company providing best execution trading support and price transparency to create InspereX. The transaction is expected to close in the first quarter of 2021, subject to customary regulatory approval.

Under the agreement, the new firm will become a unique FinTech firm with a mission of improving fixed income distribution and trading for all market participants. The merger unites the strengths of 2 pioneering companies: Incapital, with success history in fixed income and market-linked product origination, trading, sales, underwriting, and distribution, co-founded by Tom Ricketts; and Silicon Valley based FinTech 280 CapMarkets, co-founded by technologists and bond veterans, including Gurinder S. Ahluwalia and David Rudd to digitally transform how the fixed income markets are viewed, accessed, and traded by advisors, institutions, and issuers.

The business s strategy for InspereX will combine Incapital’s market knowledge, diverse products, strong distribution relationships and capital strength with the power of 280 CapMarkets’ leading edge technologies, including the revolutionary BondNav, a cloud-native bond aggregation platform. It will also include Incapital’s industry-leading market-linked products (MLP) business.

Apex Clearing – Northern Star Investment Corp. II

Apex Clearing Holdings, a digital clearing and custody solutions provider, has announced signing a definitive merger agreement with Northern Star Investment Corp. II, a publicly traded special purpose acquisition company.

Under the agreement, Apex valued at a total enterprise value of approximately $4.7 bn post-money will become a publicly listed company on the New York Stock Exchange under the new ticker symbol “APX”. Following the closing of the transaction, William Capuzzi, Apex CEO and Apex President, Tricia Rothschild, will continue to serve in their current roles at the combined company. Additionally, Northern Star Chairwoman and CEO Joanna Coles, a creative media and technology executive, will join the combined company’s Board of Directors.

Also, read Wealth Management and Private Banking Systems Report 2020