20 November 2017
visit www.avoka.com

Urban FT throws a lifeline to Digiliti Money

16 August 2017  |  4955 views  |  0 $100

Urban FT has emerged as a surprise bidder for Digiliti Money, just a day after the beleaguered remote deposit capture company warned that it was contemplating bankruptcy after auditors refused to sign off on its financial accounts for 2016.

The SaaS digital banking provider says it has made an all-cash offer that would enable Digiliti to continue to "serve its customers and stave off potential bankruptcy proceedings". The acquisition, for a sum yet to be disclosed, would be funded through Morgan Stanley on behalf of Urban FT’s principal investor.

The rescue bid comes after a rash of bad news for Digiliti Money, which last week installed a new CEO amid warnings that it expected to post second quarter revenues of between $1.1 million and $1.3 million, compared to $2 million in Q2 2016. The firm has since applied for an extension with the Securities and Exchange Commission to finalise its results statement for Q2 after its accountants said that consolidated financial statements for 2016 could no longer be relied upon.

Urban FT has past experience in closing and integrating bolt-on acquisitions, from its 2015 takeover of Wipit to last month's buy out of mobile banking tech firm iParse. The company has made known its appetite for additional acquisitions of transactional banking operators and providers of mobile, Web or other B2B services that serve community and regional financial institutions.

“Our goal in approaching Digiliti Money with an attractive and timely offer is to keep the business operating and viable as we consolidate the entities to leverage the savings from operational synergies,” says Urban FT COO Glen Fossella. “We believe that our cash offer—with the option for certain shareholders, at their discretion, to convert their Digiliti Money common stock to Urban FT common stock—represents the best benefit to all parties involved, most particularly the consumers who rely on the services of Digiliti Money’s clients."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Digiliti Money on the brink of bankruptcy as 2016 results come under investigation

Digiliti Money on the brink of bankruptcy as 2016 results come under investigation

15 August 2017  |  5700 views  |  1 comments | 2 tweets | 1 linkedin
Digiliti Money on the precipice as CEO quits

Digiliti Money on the precipice as CEO quits

07 August 2017  |  6485 views  |  0 comments | 1 tweets | 2 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit https://www.niceactimize.comvisit www.solutions.lexisnexis.comvisit www.ncr.com

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
18450 views comments | 28 tweets | 31 linkedin
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
12734 views comments | 16 tweets | 29 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
11304 views comments | 15 tweets | 41 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
9126 views comments | 26 tweets | 37 linkedin
Barclays warns of unprecedented online fraud this ChristmasBarclays warns of unprecedented online fra...
8518 views comments | 15 tweets | 31 linkedin

Featured job

London, UK (or flexible)

Find your next job