VANCOUVER, BC–Mogo will be acquiring Carta Worldwide in an all-stock transaction that promises to accelerate Mogo’s transformation from a company that has been focused on consumer-empowering applications to a broader digital wallet and business-to-business (B2B) payments technology enterprise.
The combination will create one of Canada’s largest vertically integrated FinTech companies and will significantly expand Mogo’s addressable market by entering into the $2.5 trillion global digital payments market. The acquisition is expected to close in the first quarter of 2021.
Carta’s modern issuing platform is the engine behind innovative FinTech companies and products around the globe, powering over 100 card programs and providing vital processing technology to industry leaders including TransferWise, Sodexo, Payfare and others. Carta is currently operating in Europe and Asia as well in Canada and recently expanded into the U.S. market. It generated approximately $8.5 million of revenue in 2019, over 85 percent of which was from international markets outside of Canada.
Following the completion of the transaction Mogo will integrate Carta’s transaction processing technology with its current MogoSpend product (which comes with a Mogo Visa Platinum Prepaid Card). Mogo will also leverage Carta’s technology and capabilities to launch its previously announced mobile peer-to-peer (P2P) payment solution (targeted for the first half of 2021).
“Carta has created award-winning digital transaction processing technologies for the fast-growing market for next-generation payments programs, and we’re thrilled to add them to the Mogo platform,” said David Feller, Mogo’s founder and CEO. “By using Carta’s payment processing engine, we expect to enhance Mogo’s digital wallet capabilities. [This] includes the development of our upcoming P2P payment solution, and – when combined with our digital front-end capabilities – we see great opportunity to power the next generation of platforms globally.”
“We’re excited to be combining with one of the pioneers in FinTech and a leader in Canada,” said Peter Kaju, CEO of Carta. “We see tremendous opportunity to accelerate the growth of our respective businesses by combining resources and capabilities.”
“This transformational transaction further enhances Mogo’s position as one of Canada’s leading FinTech companies, accelerates the growth of our subscription and transaction-based revenue and expands Mogo’s TAM into the $2.5 trillion global payments business,” added Greg Feller, president and CFO of Mogo. “With the sale earlier this year of our consumer installment loan portfolio, along with the recent launch of our MogoSpend account, referral partnerships and upcoming launch of our P2P payments platform, the Carta transaction further positions Mogo for accelerating revenue growth in 2021. In addition, as we continue to expand our platform and leadership position, we expect to evaluate additional technology and product acquisition opportunities going forward.”
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