TabaPay pulls the plug on proposed deal to acquire Synapse assets
Payment processer TabaPay has pulled out of a proposed deal to acquire the assets and affiliates of US-based Banking-as-a-Service (BaaS) platform Synapse Financial Technologies.
TabaPay pulls out of Synapse acquisition deal
The company announced its intention to purchase Synapse’s assets last month, shortly after Synapse had filed a Chapter 11 voluntary bankruptcy petition.
However, a TabaPay spokesperson has confirmed with FinTech Futures that the company “sent termination notice of the purchase agreement” on Thursday last week, attributing the decision to a “failure to meet the purchase agreement closing condition”.
While TabaPay does not expand on this, Synapse CEO Sankaet Pathak, in comments made to TechCrunch on the matter, claims that the company’s banking partner Evolve Bank & Trust “has failed to meet their closing condition for TabaPay to be able to close”.
Pathak tells TechCrunch that this condition is that Evolve must fully fund its For Benefit Of (FBO) accounts, but he claims the bank has yet to do so.
In a post on Medium, Pathak writes: “Our understanding is that Taba would finish the acquisition if Evolve met their closing condition of funding their accounts — which Evolve has not yet done.”
However, when contacted, an Evolve spokesperson told FinTech Futures that the bank has no involvement in the deal, saying: “Evolve was not party to TabaPay’s agreement with Synapse. We refer you to TabaPay regarding their reasons for not moving forward with the acquisition of Synapse.”
