German fintech companies figo and finreach solutions have agreed to merge their operations in a bid to bolster their footprint in the European market.
The transaction, which follows a pre-existing partnership between the two companies, will be carried out as a merger of equals.
figo-finreach merger: Details
The combination will result in the formation of a European Software-as-a-Service (SaaS) API platform for finance.
The merged entity will deliver a wide range of digital finance products, in compliance with PSD2 regulations.
finreach solutions has delivered digital SaaS solutions for different bank partners including Deutsche Bank, DKB and Postbank.
On the other hand, figo offers banking services focusing on smart data connectivity, open banking and license-as-a-service fields.
finreach solutions CEO Markus Dränert said: “With our consolidation, we are responding to the growing market need for specific applications that go beyond data connectivity.
“Our goal is to become the leading fintech platform that delivers high quality SaaS applications and API solutions – pan-European and PSD2-licensed.”
Dränert will serve as the CEO of the combined company. Cornelia Schwerter and Taner Akcok will be the CRO and CPO, respectively.
The two companies have also agreed to maintain their respective locations in Berlin and Hamburg, as well as their teams.
The figo-finreach merger is expected to be completed over the course of this year. The combination is subject to the Federal Financial Supervisory Authority (BaFin) approval.