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

FinTech Mergers & Acquisitions announcements (America): January 2021 Even in the teeth of the COVID-19 pandemic, there has been a steady flow of financial technology Mergers & Acquisitions (M&A). The article lists selected FinTech M&A announcements made in January.

AvidXchange – Core Associates

FinTech unicorn AvidXchange in early January has announced the acquisition of  Core Associates, the makers of TimberScan and complementary AP solutions trusted by users nationwide, to become a leader in accounts payable automation for the construction industry.

With the acquisition, AvidXchange will offer a complete purchase-to-pay solution for Sage 300 CRE (formerly Timberline), Sage 100 Contractor, Acumatica and Sage Intacct Construction accounting systems.

As an AvidXchange company, Core Associates will continue to offer TimberScan to help customers in the construction industry, including contractors, property managers and commercial developers, eliminate manual AP tasks and shift to electronic invoicing. The integration of TimberScan with AvidPay will benefit customers through fully automated processes from procurement through payment in a single solution, enabling greater efficiency and transparency coupled with the ability to approve invoices and payments from anywhere, at any time.

Future FinTech – Blocknance

Florida based Future FinTech Group, a leading blockchain technology R&D and application company signed a term sheet with Blocknance Financial International, a new generation cryptocurrency platform, for potential acquisition.

Founded in January 2020, Blocknance offers an advanced, semi-decentralized cryptocurrency exchange platform to buy, sell, trade, and earn cryptocurrencies. The FinTech provides services for transactions between Bitcoin and other cryptocurrencies and fiat currencies. The firm currently stands at a total valuation of $1.6 mn according to the framework agreement.

Through the acquisition, FTFT aims to further expand its business, bring additional income to the company, and create a channel that can connect Bitcoin and other cryptocurrencies with the services of mainstream financial institutions under applicable laws and regulations.

Equifax – Kount

Equifax signed a definitive agreement to acquire Kount, a leader in Artificial Intelligence (AI)-driven fraud prevention and identity trust, for $640 mn. The acquisition is expected to expand Equifax’s worldwide footprint in digital identity and fraud prevention solutions, helping businesses enhance customer interactions while combating fraud with the Kount Identity Trust Global Network – a risk-based authentication platform.

Together, Equifax and Kount will leverage a powerful set of differentiated data assets and advanced analytics to deliver a high performance, integrated view of both digitally-native transactions and signals and traditional offline identity fraud risk indicators while maintaining privacy and security at the highest levels.

NCR – Cardtronics

NCR Corporation has entered into a definitive agreement Cardtronics under which NCR will acquire all outstanding shares of Cardtronics for $39.00 per share in an all-cash transaction with an enterprise value of approximately $2.5 bn, including debt.

The transaction accelerates the NCR-as-a-Service strategy and further shifts NCR’s revenue mix to software, services and recurring revenue, and adds value for our customers. The FinTech had a long-standing relationship with Cardtronics and Cardtronics’ Allpoint network is complementary to it’s payments platform. The combined company will be able to seamlessly connect retail and banking customers and is expected to achieve $100-$120 mn in run rate operating cost synergies by the end of 2022.

Addepar – RCI

Wealth Tech Addepar has announced the acquisition of Real Capital Innovation  (RCI), the asset owner’s platform for strategic investment decision making, to offer its clients tools to model and analyze portfolios in a forward-looking way. 

The acquisition brings together two teams with deep roots in technology and data-fueled innovation and a passion for and understanding of financial markets and investment management. RCI’s sophisticated technology will be integrated with Addepar’s platform, bringing in an investor’s portfolio holdings including illiquid assets like private equity and real estate, and also complex ownership structures and will enable advisors to define data inputs and simulate investments to more optimally achieve goals and objectives.

RCI’s entire team, including co-founders Dr Ashby Monk and Kanishk Parashar, will join team Addepar and continue to drive the vision and execution in building innovative investment decision-making tools. The acquisition is expected to deepen Addepar’s value proposition both to its existing and new clients.

PNC – Tempus Technologies

PNC Bank N.A. enetered into a definitive agreement to acquire Tempus Technologies, a leading payment gateway provider that delivers secure and innovative payment processing solutions for businesses of all sizes. 

The acquisition is expected to expand PNC Treasury Management’s robust payments platform, enabling corporate clients to manage both payables and receivables through a single channel, spanning all payment rails.

Tempus Technologies will retain its president, Jason Sweitzer, existing management team and employees, and continue to operate out of Auburn, Indiana. The FinTech will continue to manage its portfolio of channel partners and clients. Its solutions will be seamlessly integrated with PNC’s existing payments platforms, such as the RTP Network, ACH, Wire Transfer and Zelle, providing clients with a comprehensive solutions suite for all their treasury needs.

Also, read US Financial Services Technology Market Overview

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