January 2025: Top five fintech M&A deals of the month
Mergers and acquisitions (M&A) are common occurrences in the world of fintech, often reshaping businesses and redefining the market landscape.
Here, we take a look at five of the top fintech M&A deals in January, including highlights from Amazon, Clearwater Analytics, Nuvei and more.
Mashreq Bank completes sale of majority stake in Neopay for $385m
Mashreq Bank sells majority stake in paytech subsidiary Neopay
UAE-based banking group Mashreq Bank has completed the sale of a majority stake in its paytech subsidiary Neopay for $385 million.
The consortium that has acquired the majority stake comprised B2B financial infrastructure technology provider Dgpays and Bahrain-based global alternative investment firm Arcapita.
Mashreq says the deal “represents a milestone for Neopay”, with the banking group retaining a significant minority stake in the company.
Launched by Mashreq in 2022, Neopay’s offerings include point-of-sale (POS) software, inventory management tools, a card processing system, a merchant acquiring solution, and payment gateway technology.
Clearwater Analytics to acquire investment management platform Enfusion for $1.5bn
Clearwater Analytics has inked a definitive merger agreement to acquire fellow Software-as-a-Service (SaaS) investment management platform Enfusion through a cash and stock deal valued at approximately $1.5 billion.
Clearwater will pay about $760 million in cash and issue 23 to 28 million new shares to Enfusion shareholders, who will receive consideration equal to $11.25 per share at a 13% premium over the closing price on 10 January.
Clearwater will also pay off Enfusion’s $30 million tax receivable agreement, and has financed the deal through an $800 million term loan B, alongside a $200 million revolving credit line, with the transaction expected to close in Q2 2025.
Amazon inks deal to acquire Indian BNPL fintech Axio
Axio set to be acquired by Amazon
India-based consumer finance start-up Axio has unveiled it has signed an agreement to be acquired by online retailing giant Amazon.
As revealed in a statement by Axio, the deal, which the company says was signed in December after the “successful completion of due diligence”, follows a six-year equity partnership between the fintech and Amazon.
While the companies have not disclosed the financial details of the acquisition, TechCrunch reports that the value of the deal exceeds $150 million, citing sources familiar with the matter.
Axio says the deal will enable the company to reach more “under-served customers”, diversify its offerings, and continue to “strike the right balance of customer experience, risk management, and affordability as we strive to responsibly expand access to credit across the country”.
Ally Financial sells credit card business to CardWorks and Merrick Bank
US-based online bank, lender and trading platform Ally Financial has agreed to sell its credit card business to CardWorks and its wholly-owned bank subsidiary, Merrick Bank. The financial terms of the deal have not been disclosed.
The deal includes Ally’s $2.3 billion credit card receivables portfolio and 1.3 million active cardholders, and is anticipated to close this year, subject to customary closing conditions.
Michael Rhodes, Ally’s CEO, explains the firm’s decision to sell its credit card arm comes as “part of our broader strategy to pursue a more focused approach, enabling us to simplify and streamline our structure, prioritise our core businesses, and drive improved returns”.
Ally is also set to discontinue its home loan products, with a notice on its website stating that 31 January is the last day for new mortgage applications.
Nuvei seals deal to acquire Paywiser Japan Limited, launches direct acquiring capabilities in Japan
Nuvei to launch direct acquiring capabilities in Japan
Canadian payments processor Nuvei has expanded further into the Asia Pacific (APAC) region by acquiring the Japanese subsidiary of global B2B payment services provider Paywiser. Financial terms of the deal have not been disclosed.
The completed acquisition of Paywiser Japan Limited includes an acquiring licence granted by the Japanese Ministry of Economy, Trade and Industry (METI).
Alongside its new Tokyo office, Nuvei says it plans to use this licence to “progress with launching direct acquiring capabilities in Japan across all major card schemes”.
The company adds that it will also “extend its direct connectivity with all relevant alternative payment methods (APMs)” in Japan.
