Global Bank,ING Groep ING announced the sale of its 85% stake in fintech subsidiary, Cobase to U.K.-listed Alpha Group through the signing of a conditional agreement which is yet to be approved by the Dutch Central Bank. The remaining stake is set to be acquired through a performance-based earn-out between 2025 and 2028.
The deal reflects high synergy as 80% of Cobases existing client base is part of Alphas target market. Also, both Alpha and Cobase will be leveraging each others unique capabilities and experience to garner additional business from clients.
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Our strong cash generation has given us the opportunity to acquire this highly synergistic platform, and we will continue to analyze the market and review M&A opportunities within our wider capital allocation strategy, CEO and founder of Alpha Group Morgan Tillbrook said.
FinTech Global reports that the initial consideration for the deal is 8 million.
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Digging Into Cobase & Alpha Group
Founded in 2017, Amsterdam-headquartered Cobase received its initial funding (7.5 million) from ING Ventures and currently boasts a team of around 30 employees. The company has grown to more than 100 clients with revenues of above 2 million annually. In June 2020, the firm raised an additional 10 million with the support of Nordea and Credit Agricole.
While Cobase enables corporate clients to manage their banking relationships, accounts, and transactions in one interface, Alpha Group combines consultancy with technology to assist international corporates withforex risk management, global accounts, and payments.
All services we currently offer will remain in place for our existing and new clients and we look forward to introducing additional features, products, and services in the near future, CEO and founder of Cobase Jorge Schafraad said.
Price Action: Shares ofING were trading 1.9% higher at $1403 at the time of publication Thursday.
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