B2B FinTech Sees M&A Boom

Market consolidation is in full swing as organizations explore how to secure their futures in a volatile market.

One of the biggest takeover discussions occurring today is that of TikTok by Microsoft (potentially), but consumer-centric technology companies aren’t the only ones in the midst of a mergers and acquisitions (M&A) spree.

PYMNTS runs down the recent slew of M&A deals in the B2B FinTech space below.

Kabbage Considers A Sale

The most recent news in B2B FinTech M&A comes from small business lending platform Kabbage. Reports in Barron’s this week said the company could be seeking up to $1 billion, according to unnamed sources, who added that the company has hired FT Partners to advise on a possible deal. According to the publication, Kabbage has already received potential offers, and is expected to choose a buyer before the month is over. Kabbage has not confirmed the news, however.

Equifax Buy Broadens Commercial Credit Stance

Equifax is broadening its footprint in the corporate credit data arena through the acquisition of Ansonia Credit Data.

Ansonia aggregates commercial credit data, and its technology will be integrated into Equifax’s PayNet division, which offers financial service providers and other third parties a credit analysis solution for small- to medium-sized businesses (SMBs). Ansonia said in its announcement it holds data of more than $1.3 trillion from corporates across North America. The companies did not disclose the acquisition price tag.

MSTS To Be Acquired By Corsair Capital

August began with the news that Corsair Capital has reached an agreement to acquire B2B credit and payments solution provider MSTS, currently owned by World Fuel Services Corp.

While MSTS will remain a standalone company, the firms said the takeover will help fuel its growth in the B2B payments space and broaden its Credit-as-a-Service offering through customer acquisition as well as some strategic takeovers of its own. Corsair, meanwhile, plans to capitalize on the digitization of the B2B payments arena through the deal, the financial details of which remain undisclosed.

OnDeck Purchased For $90 Million

In a $90 million agreement, SMB digital lending platform OnDeck will be acquired by FinTech Enova International. The acquisition, which will transpire in the form of cash and stock, will merge “two FinTech leaders,” according to Enova CEO David Fisher, citing the firms’ “complementary strengths and synergies.”

OnDeck Chairman and CEO Noah Breslow had a slightly more muted tone in his statement, noting that the merger is “the right path forward” for the company following “an extensive review of our strategic options.”

Competition regulators will have to approve the deal, but the firms said they plan to finalize the takeover before the year is over.

YayPay’s AR Tech Attracts A Buyer

Accounts receivable (AR) technology provider YayPay has found a buyer in Quadient, which will take over the company as it looks to broaden its own Business Process Automation offering, connecting SMBs to its omnichannel document automation portal, Impress.

YayPay’s invoice delivery automation, collections and credit management, payments and cash application capabilities will be integrated into Quadient’s software offering, the companies noted. The firms did not disclose financial terms of the agreement.

Paya Goes Public With Merger

Integrated payments and eCommerce technology provider Paya recently issued a press release announcing its planned merger with FinTech Acquisition Corp. III (FinTech III), an acquisition company, to combine into one entity under the Paya brand. The new company will also go public under the stock ticker PAYA on the NASDAQ exchange.

The merger values the newly formed entity at $1.3 billion, the companies noted. Today, Paya is majority owned by private equity firm GTCR, and the companies noted GTCR will remain the largest shareholder of the newly formed entity.

Paya operates an ACH and card platform called Paya Connect that can be integrated into third-party service providers’ solutions, with the firm focusing on B2B markets, healthcare, government entities and other sectors.

ZenBusiness Completes Joust Takeover

ZenBusiness, a B2B technology company that helps entrepreneurs launch their small businesses, has reportedly completed its takeover of Joust, according to Joust CEO Lamine Zarrad, Crunchbase reported.

Joust operates a banking platform for independent contractors and entrepreneurs to manage their own payment processes. According to the report, Zarrad said the companies are “both holistic solutions, but starting at different ends of the spectrum.” The companies will integrate each other’s technologies under the brand name ZenBusiness Money. Financial terms of the acquisition were not disclosed.