Exits & Deep Reads

Fifth Third embeds with Rize (TWIF 5/28)

Fougeron Architecture’s Fall House in Big Sur, California

Hello Fintech Friends,

Please find another week of fintech exits and deep reads below.

☯️ Exits

🤝 M&A - Fintech

US regional bank Fifth Third surprised the fintech community this week with the announcement that it acquired banking-as-a-service software provider Rize. The terms of the deal were undisclosed, but Fifth Third’s treasury group anticipates $130 million ARR this year. It remains to be seen whether this is an outlier BaaS acquisition or it presages a wave of embedded fintech consolidation.
Maxwell, a mortgage lending platform for community banks, acquired LenderSelect, a banking capital markets access provider.
The owner of the Miami International Securities Exchange acquired the LedgerX exchange as part of the FTX bankruptcy proceedings.
PayIt, which helps governments register vehicles and process tax payments, acquired S3, a platform for “licensing and permitting for hunting, fishing, RVs, boats and event management.”
Private equity firm Silver Lake acquired a minority stake in Italian accounting, payroll and business management software provider TeamSystem (founded in 1979) for €600 million.
Mexican regulators approved Argentinian fintech Ualá’s purchase of ABC Capital to obtain a Mexican banking license.
ATM business NCR is considering a sale of its digital banking business for $2 billion.
Australian payments firm Tyro Payments saw a 20% drop in share price after it was revealed that private equity firm Potentia was walking away from a potential $A875 million acquisition.
Tradeweb, an online marketplace for rates, credit, equities and money markets, agreed to acquire Australian and New Zealand government bond trading platform Yieldbroker.
Hong Kong fintech Hyphen rebranded to MoneyHero Group and entered into a merger agreement with Bridgetown Holdings, a SPAC run by Peter Thiel, at a $342 million valuation.
College payment processor Transact Holdings has hired investment bank William Blair to explore a $1 billionsale.

🏦 M&A - Bank and FinServ

TBC Bank of Georgia (the country), a bank with $11 billion AUM, acquired a 51% stake in Uzbekistani payments firm LLC Inspired, which operates under the DBA Payme in the country and features 1.3 million customers.
Citigroup will spin off its Mexican banking unit Banamex through an IPO, after an effort to sell the bank collapsed.
Pacific West Bank sold off its real estate lending unit to RE investing platform Roc360.
Japanese bank Mizuho will buy US investment bank Greenhill.