By Gloria Methri
In 2023, the FinTech sector saw a slowdown in deal activity as companies around the world took 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, companies remain interested in exploring options and are looking forward to closing potential deals when market conditions improve. Several FinTech segments, including payments, treasury management software and corporate spinoffs, are attracting M&A interest, according to S&P Global Market Intelligence.
Let’s look at four of these announcements made this month:
Klarna Klarna is selling its online payment solution to a group of investors led by Kamjar Hajabdolahi, CEO and founding partner of BLQ Invest. The sale of KCO will allow Klarna to focus on its core business and the flexible payment methods it offers in collaboration with several service providers.
Launched in 2012, Klarna Checkout works directly with merchants to help them offer its BNPL payment options. The company is successful in the Nordics, with a 20% market share that rises to 40% in Sweden.
Ageras Ageras has signed an exclusive agreement with Société Générale to acquire French SME Shine. With this acquisition, Ageras aims to strengthen its position as a provider of banking and accounting software for SMEs, by expanding its presence in France. The region has been a key market for the Danish FinTech since it entered in 2021 with the acquisition of pan-European invoicing software Zervant.
Natwest The group is set to buy Sainsbury’s retail banking business as the supermarket group exits the sector to focus on grocery. The deal, worth $3.2 billion, includes Sainsbury’s credit card, unsecured personal loan and savings account assets.
The transaction will increase NatWest’s assets and customer accounts, in line with the bank’s strategy to expand its retail banking operations.
Shift4Vectron Systems AG, a specialist in integrated payment and commerce technologies, has acquired a majority stake in Vectron Systems AG, one of Europe’s largest providers of point-of-sale (POS) systems for the restaurant and hospitality industries.
FinTech Shift4 also completed its previously announced acquisition of Revel Systems. Revel has over 18,000 retail locations in the U.S. and abroad, representing a $17 billion payments opportunity.
Also read: Testing and Quality Assurance for NextGen Bank Tech Q2 2024