GoLogiq signs letter of intent to acquire Fram Venture 7 and SME lender DragonLend
GoLogiq, a US-based provider of fintech and consumer data analytics, has signed a non-binding letter of intent to acquire Fram Venture 7.
GoLogiq to acquire Fram Venture 7 and DragonLend
GoLogiq’s letter of intent has valued the acquisition of the Swedish fintech company at $6 million, which it intends to complete via an all-stock transaction.
However, the acquisition value could be increased to $20 million if certain earn-out targets are achieved.
If a deal is agreed, the acquisition will also include Fram Venture 7’s wholly-owned subsidiary, DragonLend, a Vietnam-based short-term lending platform serving SMEs engaged in various supply chain verticals, such as manufacturing, wholesale and distribution.
Founded in 2019 by the Swedish-Vietnamese investment group Fram Skandinavien, DragonLend has disbursed $9 million in SME loans since 2020 in a welcomed attempt to close the estimated $21.7 billion gap in SME lending in Vietnam.
GoLogiq said in a statement that it anticipates closing the transaction with Fram Venture 7 in September.
If given the green light, the takeover is expected to “complement GoLogiq’s existing fintech ecosystem”, which currently extends to a range of financial services, including payroll and retirement investing, while bolstering its position in the Asia-Pacific.
This news comes weeks after the company acquired the Vietnamese payroll and HR fintech Symplefy for $30 million.
“The acquisition of DragonLend would further our expansion into Vietnam with a proven business lending service that is highly complementary to our fintech ecosystem,” explains GoLogiq CEO Granger Whitelaw.
“We see its scalable platform enabling us to expand into other emerging markets across Southeast Asia, such as Singapore and Thailand.”
“We believe market conditions are perfect for DragonLend to rapidly scale its SME lending platform in Vietnam, especially given how the country’s small business sector has been experiencing strong economic growth,” adds Max Bergman, CEO of DragonLend.
“We now have assembled years of valuable data for our credit scoring model, which can rely on for driving profitable growth.”
However, in another twist to this story, GoLogiq recently agreed in June to sell its fintech assets to the recruiting solutions provider Recruiter.
This separate transaction has been forecast to close “in late third quarter or early fourth quarter of 2023”, and if consummated before its intended deal with Fram Venture 7, GoLogiq intends to assign its rights in its purchase agreement to Recruiter, whereupon Fram Venture 7 would become a subsidiary of Recruiter.
