The acquisition is aimed at increasing its foothold in the Nordic region.
As per a statement from Meniga, a London-based fintech company, it is acquiring its Sweden-based peer Wrapp for an undisclosed amount. The acquisition is aimed at increasing its footprint in the Nordic region.
Both companies provide merchants the ability to offer personalized rewards and cashbacks to consumers based on their purchase behavior.
“The acquisition of Wrapp alone will further bolster growth and will be adding just over EUR 3 million in annual recurring revenues from rewards with substantial near-term growth potential in the Nordic region,” said Georg Ludviksson, Meniga’s co-founder and Chief Executive.
The terms of the acquisitions sees Wrapp’s shareholders, which includes Nordic banking group Nordea, being paid with newly-issued Meniga shares; they also have a right to increase their stake in Meniga to a ceiling of 25% depending on how well Meniga performs in the next few years.
Other shareholders of Meniga include UniCredit, Íslandsbanki and Swedbank.
Meniga, which provides digital banking technology and has operations in over 30 countries with over 75 global banking clients, posted revenues of $14.6 million (12.6 million euros) in fiscal year 2017-2018.
($1 = 0.8658 euros)