5 Major FinTech Acquisitions Announced in Europe in May 2024

Gloria Methri

The FinTech sector saw a slowdown in transaction activity in 2023, with companies around the world taking a cautious approach to mergers and acquisitions (M&A). In the first half of the year, only 128 M&A transactions were recorded, compared to 248 and 188 in the first and second half of 2022.

Despite the decline, companies remain interested in exploring options and look forward to potential deals as market conditions improve. According to S&P Global Market Intelligence, several FinTech segments, including payments, financial management software and enterprise spin-offs, are attracting merger and acquisition (M&A) interest.

Let’s take a look at five such announcements made this month:

UK digital bank Chetwood Financial has acquired buy-to-let mortgage lender CHL Mortgages for Intermediaries (CMI) from Barossa Asset Buyer Sarl. Chetwood has entered into a tender process to acquire the lender trading as CHL Mortgages in order to expand its reputable business and gain access to its experienced mortgage team.

Throughout the process, Chetwood, CMI and Barossa have been focused on ensuring a smooth transition between owners. The move will enable Chetwood to grow its mortgage portfolio and expand its reach in the mortgage brokerage market.

Gallant Capital Partners has acquired payment testing company Fime and UL Solutions, combining the technical capabilities and expertise of both companies under the Fime brand.

Stakeholders in payments, smart mobility and digital ID can now access a full suite of consulting and testing services through Fime, while enabling cost and time savings.

The combination significantly expands Fime’s geographic reach, bringing global expertise on a local scale. Interested parties can access business and technical consulting, as well as compliance testing and quality assurance services in over 19 countries.

CUBE, a specialist in automated regulatory analysis (ARI) and regulatory change management (RCM), announced the acquisition of Thomson Reuters Regulatory Intelligence and Oden products and businesses.

The acquisition expands CUBE’s existing global customer base to approximately 1,000 customers in banking, insurance, asset and investment management, payments and related regulated industries.

CUBE can now provide an expanded and comprehensive selection of specialized regulatory intelligence and regulatory change services.

HPS, a global provider of payment software and solutions, has agreed to acquire CR2, an Irish digital banking and payment software company.

CR2, with offices in Dublin, Dubai, Jordan, India and Australia, is known for its innovative digital banking and payments solutions. Through its flagship BankWorld platform, the company serves more than 90 banks in over 50 countries.

CR2 is expected to significantly contribute to HPS’s financial performance by providing new potential revenue opportunities in complementary markets.

FE fundinfo, the financial data company connecting the asset management industry with distribution networks in the UK, Europe and Asia Pacific, has announced the acquisition of Dericon, a pioneering FinTech company in the German wealth management industry.

The partnership will enable FE fundinfo clients to have direct access to one of the largest distribution channels for asset managers in Germany, while expanding the company’s capabilities in the region.

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