US payment technology leader FIS has reportedly finalized the acquisition of Demica, a UK-based supply chain finance fintech, for $300 million. This move highlights FIS’s strategic expansion into one of the fastest-growing areas in financial technology, marking a significant milestone for both companies.
Demica, known for facilitating working capital funding for corporations and banks, boasts a robust growth trajectory, with assets on its platform growing at a compound annual rate of 40%. Its partnerships with leading global banks such as HSBC, Standard Chartered, and Lloyds Banking Group underscore its market influence.
This acquisition represents a substantial exit for the consortium of private investors who acquired Demica in 2014. For FIS, the move aligns with its broader strategy to expand its footprint, following the recent acquisition of Bond, and positions it to capitalize on the $1 trillion supply chain finance market.
By integrating Demica’s platform and expertise, FIS is poised to unlock new growth opportunities, scaling Demica’s business to unprecedented levels. With access to FIS’s global resources and extensive client base, Demica is well-positioned to command a larger share of the rapidly evolving supply chain finance sector.
According to Sky News, an official announcement from FIS regarding the acquisition is expected imminently.
This partnership is set to reshape the supply chain finance landscape, leveraging the strengths of both companies to deliver innovative solutions and drive industry transformation.
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