17 C
August 8, 2022
Finance Technologies

Canadian challenger Mogo merges with Difference Capital

Mogo Finance Technology, the Canadian challenger bank, has signed a definitive arrangement to merge the bank with Difference Capital Financial.

“This transaction enables Mogo to continue to invest in new products and innovation”

Under the terms of the agreement, each common share of Mogo will be exchanged for one Difference common share. Upon completion of the transaction, former Mogo shareholders will own approximately 80% of the combined entity on a fully diluted basis.

The transaction is subject to Mogo shareholder approval, regulatory approval and satisfaction of other customary conditions. The transaction is expected to close in the second quarter of 2019.

The combined entity will go under the name Mogo. Mogo’s founder and CEO Dave Feller will be chairman and CEO; and Greg Feller will be president, CFO and director.

“This transaction enables Mogo to continue to invest in new products and innovation, building on our position in the Canadian fintech space,” said David Feller.

“The merger with Difference strengthens our financial position and represents a significant opportunity to create value for shareholders of the combined entity,” adds Greg Feller. “Shareholders of both companies will benefit from improved financial flexibility as we execute on our strategy of partnering to bring best-in-class products to our more than 800,000 members.”

The new company will keep building on Mogo’s fintech platform in Canada. The combination will give Mogo immediate access to approximately $9 – $10 million in cash, which reflects proceeds from Difference’s two recent funding rounds.

In addition, Mogo will have control of Difference’s portfolio of investments in private technology companies in Canada, including Hootsuite and Vision Critical, which collectively have an estimated fair market value of approximately $24 million.

Canadian challenger Mogo merges with Difference Capital
Canadian challenger Mogo merges with Difference Capital

Related posts

The reality of Brexit for small businesses

Amme Jhonson

Boutique wealth manager CWPW launches in UK

Amme Jhonson

Swift to reveal European E2E payments pilot

Amme Jhonson

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Privacy & Policy