5 Major FinTech Acquisitions announced in Europe in May 2024

By Gloria Methri

The FinTech sector in 2023 witnessed a slowdown in deal activity, with companies around the world adopting 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, firms remain interested in exploring options and are looking forward to potential deals when market conditions improve. According to S&P Global Market Intelligence, several FinTech segments, including payments, treasury management software, and corporate carve-outs, are attracting merger and acquisition (M&A) interest.

Let’s look at five such announcements made this month:

UK digital bank Chetwood Financial has acquired buy-to-let mortgage lender CHL Mortgages for Intermediaries (CMI) from Barossa Asset Purchaser Sarl. Chetwood entered a bidding process to acquire the lender, which trades as CHL Mortgages, to grow a well-regarded business and access its experienced mortgage lending team.

Throughout the process, Chetwood, CMI and Barossa have been focused on ensuring a seamless transition between owners. The move will enable Chetwood to grow its mortgage loan book and expand its reach within the mortgage intermediary market.

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

Stakeholders in payments, smart mobility and digital ID can now access a complete set of consultancy and testing services via Fime while enabling cost and time savings.

The combination greatly expands Fime’s geographical reach, offering global expertise on a local scale. Stakeholders can access business and technical consultancy, as well as compliance and quality assurance testing services in over 19 countries.

CUBE, a specialist in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), has announced its acquisition of the Thomson Reuters Regulatory Intelligence and Oden products and businesses.

The acquisition expands CUBE’s existing global customer base to approximately 1,000 customers in 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 CR2, a 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 payment solutions. Through its flagship platform, BankWorld, the company powers 90+ banks across more than 50 countries.

CR2 is expected to contribute materially to HPS’s financial performance by delivering new potential revenue opportunities in complementary markets.

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

The partnership will enable FE fundinfo’s clients to have direct access to one of the largest distribution channels for asset managers in Germany while growing the company’s capabilities in the region.

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