Top 4 FinTech M&A deals in the Americas: October 2020

By Pavithra R

FinTech dealmaking has been red-hot in 2020. COVID-19 has not slowed any of the FinTech Mergers and Acquisitions (M&A). IBS Intelligence has collated a list of some of the biggest FinTech M&A of October 2020.

Visa + YellowPepper

Visa has announced the signing of a definitive agreement to acquire YellowPepper, a pioneering FinTech with proprietary technology and partnerships that supports leading financial institutions and startups in Latin America and the Caribbean. YellowPepper will continue to provide its brand-independent solutions commercially, and CEO Serge Elkiner will continue to lead the team.

The acquisition builds on an investment and strategic partnership that Visa made in YellowPepper in May 2018. YellowPepper’s platform offers a wide range of APIs that allow processors, issuers, and governments to seamlessly access multiple lanes for many payment flows, through a single connection. The acquisition of YellowPepper is expected to accelerate the adoption of Visa’s “network of networks” strategy reducing the time-to-market for issuers and processors, and the cost of accessing solutions.

Morgan Stanley + Eaton Vance

Morgan Stanley has announced that the firm has entered into a definitive agreement to acquire Eaton Vance, a leading provider of advanced investment strategies and wealth management solutions with over $500B in assets under management (AUM), for an equity value of approx. $7B.

The acquisition advances Morgan Stanley’s strategic transformation with 3 world-class businesses of scale: Institutional Securities, Wealth Management and Investment Management. Morgan Stanley Investment Management and Eaton Vance are complementary to each other with limited overlap in investment and distribution capabilities.

Syncapay + North Lane Technologies

daVinci Payments, an enabler of on-demand real-time virtual and physical payments and North Lane Technologies, formerly Wirecard North America has announced that the companies have joined forces to establish a high-growth, payment company with innovative technology and solutions.

The combined entity will operate under the umbrella of Syncapay, a company with unparalleled ability to accelerate the future of digital payments, through its extensive suite of FinTech services & payment solutions across rewards, disbursements, compensation, incentives and global payouts. The addressable market of the combined company is estimated to be $7.9 trillion in annual payment volume, with $500 billion in addressable revenue. Syncapay will remain the holding company, with North Lane & daVinci reporting to Syncapay.

INX + Openfinance Securities

INX Limited, the global blockchain-based platform for trading digital assets has signed a term-sheet for the acquisition of Openfinance Securities, a registered U.S. broker-dealer operating a registered FINRA/SIPC member, with an alternative trading system.

Under the agreement, INX will acquire Openfinance’s broker-dealer and ATS business including its systems, digital asset listings, client base and licenses. The acquisition is expected to bolster INX’s leadership position in the digital assets’ ecosystem.