OneConnect enters MoU to purchase majority stake in VZOOM

By Leandra Monteiro

OneConnect Financial Technology, one of the leading technology-as-a-service platforms for financial institutions in China, announced that it has entered a Memorandum of Understanding to acquire a majority equity stake in SHENZHEN VZOOM CREDIT TECHNOLOGY, a credit technology company that provides integrated credit solutions to help financial institutions in China automate, transform and scale up credit products and services for medium and smalls enterprises.

Following the MoU, OneConnect intends to acquire no less than 50% equity stake in VZOOM Credit Technology in exchange for a combination of cash and shares. The exact valuation, the percentage of equity stake to be sold, and the form of consideration for the acquisition, including the number of OneConnect consideration shares to be issued and any adjustment mechanism etc., will be provided for in a definitive agreement.

The closing of the transaction is subject to the execution of the definitive agreement, OneConnect’s satisfactory due diligence and internal approval as well as any other conditions to be identified in the definitive agreement. The MoU provides an exclusivity of three months from its date.

The potential acquisition, if and when consummated, would create strategical value for OneConnect, including allowing OneConnect to continue to enhance and optimize its SME banking related product performances, offerings and competitiveness, complement its market position, and expand its market share.