5 Major FinTech Acquisitions Announced in Europe in May 2024

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 five of these announcements made this month:

UK digital bank Chetwood Financial has acquired a buy-to-let mortgage lender CHL Mortgages for Intermediaries (CMI) of Barossa Asset Purchaser Sarl. Chetwood has commenced a tender process to acquire the lender, trading as CHL Mortgages, in order to grow a reputable business and gain access to its experienced mortgage team.

Throughout the process, Chetwood, CMI and Barossa have ensured a smooth transition between the owners. This transaction will enable Chetwood to grow its mortgage portfolio and expand its reach into the mortgage intermediary market.

Gallant Capital Partners has acquired the payments testing businesses of Fime and UL Solutions, combining the technical capabilities and expertise of both companies under the Fime brand.

Payments, smart mobility and digital identity players can now access a comprehensive set of consulting and testing services via Fime while saving time and money.

This merger significantly expands Fime’s geographic reach, offering global expertise on a local scale. Stakeholders can access business and technical advice, as well as conformance testing and quality assurance services in more than 19 countries.

CUBE, a specialist in automated regulatory intelligence (ARI) and regulatory change management (RCM), has announced its acquisition Thomson Reuters Regulatory monitoring and Oden products and activities.

This acquisition expands CUBE’s existing global customer base to approximately 1,000 customers across banking, insurance, asset and investment management, payments and adjacent regulated industries.

CUBE can now provide an expanded and comprehensive selection of specialized regulatory intelligence and regulatory change services.

HPS, a global provider of payment software and solutions, has agreed to acquire CR2a digital banking and payments software company in Ireland.

CR2, with offices in Dublin, Dubai, Jordan, India and Australia, is known for its innovative digital banking and payments solutions. Through its flagship platform, BankWorld, the company powers over 90 banks in more than 50 countries.

CR2 is expected to contribute significantly to HPS’ financial performance by providing potential new revenue opportunities in complementary markets.

FE fundinfo, a financial data company connecting the asset management industry with distribution networks in the UK, Europe and Asia Pacific, has announced the acquisition of Dericona pioneering FinTech in the wealth management sector in Germany.

This partnership will provide FE fundinfo clients with direct access to one of the largest distribution channels for asset managers in Germany while expanding the firm’s capabilities in the region.

Also read: NextGen Core Banking: The Future of Banking in Q1 2024