B2B FinTech Space Shows M&A Activity to Secure Future Markets

Of course, headlines are full of the potential acquisition of TikTok by Microsoft, but there is plenty of merger activity beyond consumer-centric technology companies. There’s a good deal of market consolidation going on in B2B FinTech space, as organizations try to determine the way in which they can secure their futures in a volatile post-pandemic market. Here’s a list or recent M&A transactions.

Kabbage

Some of the biggest news in B2B FinTech M&A involves the small business lending platform Kabbage. Barron’srecently reported that Kabbage may be seeking up to $1 billion. The report said that the Atlanta company hired FT Partners after receiving expressions of interest. , the people said. Kabbage could sell for $750 million to $1 billion, according to an inside source at the company.

Possible buyers could include financial institutions and technology companies; however, there is no mention of any private-equity investors as being interested in acquiring Kabbage. Barron’s says that an announcement is expected within a month.

A company spokesperson said that Kabbage does not comment on rumors or speculation.

Kabbage was an early user of big-data analytics to determine whether a small business was worthy of credit. The company acquired Orchard in 2018 and Radius Intelligence in 2019 to bolster its data capabilities. Kabbage has invested more than $1 billion in technology that allowed it to automate loan applications.

Corsair Capital-MSTS

Corsair Capital has announced that it’s reached an agreement to acquire B2B FinTech credit and payments solution provider MSTS. The Kansas-based company is currently owned by World Fuel Services Corp.

World Fuel Services Inc. acquired MSTS in 2013 for $137 million.

MSTS will remain a standalone company; however, both companies say that the takeover will help sustain its growth in the B2B payments space and broaden its Credit-as-a-Service offering through customer acquisition and some of its own strategic acquisitions. Corsair says that it will leverage the digitization of the B2B payments arena through the deal.

The financial details of the transaction are still undisclosed.

“We’ll be looking at investments in our technology platform that underpin everything we do,” MSTS President Brandon Spear told the Kansas City Business Journal. “There is also scope for geographic expansion.”

Founded in 1978, MSTS began as a service to assist businesses in eliminating fraud in fuel purchases by using gasoline cards. The company continuously evolved to create new payment technology.

Equifax- Ansonia Credit Data

The Atlanta-based B2B FinTech company, Equifax, recently announced that it has acquired Ansonia Credit Data, a commercial credit data firm.

Ansonia specializes in transportation, logistics, and invoice receivables. The company has more than $1.3 trillion in accounts receivable data from industries in North America.

The move allows Equifax to further enlarge its footprint in the corporate credit data space with the acquisition. Ansonia Credit Data aggregates commercial credit data, and its technology will be integrated into Equifax’s PayNet division. That division provides financial service providers and other third parties with a credit analysis solution for small- to medium-sized businesses.

“Our integration into Equifax gives us the additional resources and capabilities we need to further scale and innovate for financing teams focused on the transportation and logistics industry,” said Anthony Kinninger, Ansonia’s founder and president, in a statement. About the deal.

Neither of the companies disclosed the acquisition price.

“Integration of Ansonia into the Equifax USIS business provides us with a rich source of customized intelligence to meet the needs of capital providers who extend credit to transportation and logistics companies,” said Sid Singh, president of Equifax USIS, in a statement.

Enova International-OnDeck

In late July, Enova International and OnDeck® announced that they entered into a definitive agreement in which Enova will acquire all outstanding shares of OnDeck in a cash and stock transaction valued at approximately $90 million.

OnDeck will be acquired by FinTech Enova International. The acquisition, which will be a cash and stock deal, will merge “two FinTech leaders,” according to Enova CEO David Fisher, citing the firms’ “complementary strengths and synergies.”

A press release stated that the deal “brings together two complementary, market-leading businesses combining world-class capabilities in consumer and small business online lending.” It goes on to say that the two companies “are both innovators that have helped revolutionize online lending, using data and advanced analytics to simplify and expand access to financial services for underserved borrowers, while providing an unparalleled customer experience.”

The deal still must be approved by regulators; however, the plan is to finalize the takeover before the end of the year.

YayPay- Quadient

YayPay, and accounts receivable technology provider announced that it has been acquired by Quadient, which is seeking to extend its own Business Process Automation offering, connecting small businesses to its omnichannel document automation portal, Impress.

YayPay’s invoice delivery automation, collections and credit management, payments and cash application capabilities will be integrated into Quadient’s software.

The terms of the transaction were not disclosed. However, one report said that the purchase price, excluding transaction-related costs, is more than $20 million. The acquisition is a total cash deal without recourse to additional debt.

Paya- FinTech Acquisition Corp. III

Integrated payments and eCommerce technology provider Paya recently announced in a press release that it had entered into a definitive merger agreement with B2B FinTech Acquisition Corp. III (FinTech III), an acquisition company.

The move will combine the two services into one entity under the Paya brand. The new company also plans to go public under the stock ticker PAYA on the NASDAQ exchange.

The dal values the newly formed combined company at $1.3 billion.

ZenBusiness- Joust

ZenBusiness, a B2B technology company that works with entrepreneurs to launch their small businesses, announced the takeover of Joust, according to Joust CEO Lamine Zarrad, Crunchbase News reported.

Austin-based Joust has a banking platform for independent contractors and entrepreneurs that allows them to manage their own payment processes. According to the report, Zarrad said the companies are “both holistic solutions, but starting at different ends of the spectrum.” The B2B FinTech companies apparently will integrate each other’s technologies under the brand name ZenBusiness Money.

“We were looking for business deals, found them and wanted to put a deal together, but the timing wasn’t right then,” Ross Buhrdorf, ZenBusiness co-founder and CEO, said in an interview with Crunchbase News.

“A conversation came up again later, and they asked if we would consider purchasing them. It was just a perfect fit for our section,” he said.

Financial terms of the acquisition were not disclosed.