Global financial Institution ING is set to sell 85% of its FinTech subsidiary Cobase to Alpha Group.
The initial consideration of the deal is £8m, with the remaining stake set to be acquired via a performance based earn-out between 2025 and 2028.
The transaction is expected to amplify the growth of both Cobase and Alpha Group by leveraging and sharing each other’s unique capabilities and experience. Analysis has shown that 80% of Cobase’s existing client base falls within Alpha’s own target market, highlighting the strong potential for mutual value adds.
Speaking on the acquisition, Morgan Tillbrook, CEO and founder of Alpha Group, said:“Whilst we have had plenty of opportunities to make acquisitions and external investments, we have very high expectations for ourselves and our investors. The fact that after more than six years as a public company and after considering numerous acquisition opportunities, this is our first investment of this kind is ultimately a testament to the company that Cobase have built, and the strength of the alignment the company has with our business.
“I am delighted to welcome Jorge and his team to Alpha and have been incredibly impressed by the technology they have built. I am excited by the opportunity to work together to accelerate the growth of both businesses and the strong mutual value it will bring to our client bases.
“Our strong cash generation has given us the opportunity to acquire this highly synergistic platform, and we will continue to analyse the market and review M&A opportunities within our wider capital allocation strategy.”
Cobase was founded in 2017, with initial funding from ING Ventures after the concept was successfully proven in an ING Accelerator program.
Going forward, Cobase will retain its team and continue to operate under its own brand and management whilst its proprietary technology will help to accelerate Alpha’s digital proposition.
Jorge Schafraad, CEO and founder of Cobase, said we are delighted to join the Alpha Group as they are a client-driven and innovative company in a field closely aligned to ours.
“We are convinced that this will unlock exciting new opportunities for our customers, partners and team going forward.
“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,” he said.
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