Payments & Fintech Acquisitions in Canada

Valsoft Corporation Inc., a Canadian acquirer of vertical market software businesses, announced the acquisition of CORE Cashless, a provider of secure cashless payment systems for the amusement and leisure industries. CORE Cashless will continue to operate autonomously and will be managed within Valsoft’s Aspire Software operating group to support its next phase of growth.

Wealthsimple acquired Fey, an AI-enabled investment research and trading tools platform founded in 2021. Fey’s earnings analysis, natural language stock screening, and personalized real-time news feed are expected to be integrated into Wealthsimple by year-end to enhance the trading experience for Canadian clients.

Paynt, a European payment technology company, acquired Canada-based payment processor E-xact Transactions to accelerate Paynt’s expansion across North America. The deal adds a new operational hub in Vancouver, and Paynt appointed payments veteran JohnPaul (John Paul) Golino to its board to lead integration of E-xact into Paynt’s platform and regional go-to-market efforts.

Robinhood announced an all-cash agreement to acquire Canada-based decentralized trading platform WonderFi for approximately $179 million (CA$250 million), with closing expected in the second half of the year. The deal is intended to expand Robinhood into Canada by leveraging WonderFi’s regulated crypto trading infrastructure and its user base.

Spetz Inc. completed its acquisition of Sonic Strategy Inc., issuing 13,999,999 Spetz common shares to Sonic Strategy shareholders in exchange for 100% of Sonic Strategy’s outstanding shares. Sonic Strategy is a blockchain staking company focused on the Sonic blockchain, and the deal is intended to strengthen Spetz’s blockchain infrastructure and staking solutions capabilities. As part of the transaction, Sonic Strategy CEO Mitchell Demeter will join Spetz’s board while continuing to lead Sonic Strategy.

Fiserv, Inc., through its affiliate 1517452 B.C. Ltd., completed the acquisition of Payfare Inc. via a plan of arrangement under the British Columbia Business Corporations Act. Following the transaction, Payfare’s Class A common shares will be delisted from the Toronto Stock Exchange and withdrawn from trading on OTCQX, and Payfare will seek to cease being a reporting issuer in Canada.

Primus Capital made a strategic investment in Reach, a global Merchant of Record (MoR) provider, to accelerate the company’s global expansion and product roadmap. The funding will be used to scale operations, enhance support for enterprise customers, expand Reach’s ecommerce product suite, and grow its global entity network for payments, tax compliance, and fraud protection.

FCT announced a majority investment in Fintracker Inc., an identity verification and compliance technology provider serving Canadian real estate transactions. The partnership will integrate Fintracker’s digital workflows to improve efficiency, security, and compliance with KYC/AML requirements across the Canadian real estate market.

KORT Payments acquired Barnet Technologies, a Canadian provider of point-of-sale software for regulated industries, particularly the licensed liquor sector. The deal is intended to integrate KORT’s omnichannel payment processing with Barnet’s POS platform to create a more holistic offering, streamline operations, and drive growth and recurring revenue.

Celero Commerce announced the acquisition of SONA, an electronic payments technology provider serving businesses across Canada. The deal supports Celero’s expansion into the Canadian market and increases Celero’s annual card processing volume to approximately $26 billion across North America.

Kyndryl entered into an agreement to divest its Canadian Securities Industry Services (SIS) transaction processing platform to Broadridge Financial Solutions, with Kyndryl expected to continue providing managed services related to SIS after closing. Broadridge later announced it completed the acquisition, positioning SIS as part of its offering of wealth management and capital markets software solutions for Canadian financial services firms. Financial terms were not disclosed.

NeuroStreet announced it has acquired TickBlaze, a hybrid trading platform serving discretionary and quantitative traders. The deal is intended to strengthen NeuroStreet’s trading technology and product offerings across retail traders, prop firms, brokerages, and hedge funds. TickBlaze founder Daniel Tochner will join NeuroStreet as Chief Technology Officer.

Nuvei entered into a definitive agreement to be acquired and taken private by Advent International in an all-cash transaction valuing the company at approximately US$6.3 billion (US$34.00 per share). Nuvei founder and CEO Philip Fayer, along with existing shareholders Novacap and CDPQ, will roll over significant portions of their equity and remain shareholders in the resulting private company, which will continue to be headquartered in Montreal.

Payroc WorldAccess, LLC (Payroc) has acquired SterlingCard Payment Solutions Inc., a payment solutions provider headquartered in Markham, Ontario. The deal strengthens Payroc’s Canadian presence by adding best-of-breed card-present capabilities to complement its existing card-not-present and ACH/PAD offerings, and brings Sterling’s team and leadership into Payroc Canada.

Dover completed the acquisition of Bulloch Technologies, Inc. for CAD 150 million (subject to customary adjustments) plus additional contingent consideration tied to future growth. Bulloch, a provider of point-of-sale, forecourt controller, and electronic payment server solutions for the convenience retail industry in Canada, will be integrated into Dover Fueling Solutions (DFS) within Dover's Clean Energy and Fueling segment.

Objectway acquired Nest Wealth, a Canadian provider of digital wealth solutions for client onboarding, account opening, and financial planning. The deal supports Objectway’s growth and expansion in North America while enhancing its wealth and investment management software offering across Canada, the United States, and EMEA.

Passiv, a Canadian fintech company and operator of the SnapTrade investing API platform, acquired the social investing application Wealthly. The transaction includes bringing on Wealthly founder Terry Ma and his staff, and is intended to add IP and technical expertise to accelerate development of Passiv’s SnapTrade product.

Preludd Payment Services has completed the acquisition of Amadis, a provider of EMV card-present payment acceptance and SoftPOS solutions. The deal expands Preludd’s end-to-end payment offering across the payment chain and strengthens its global footprint by combining Preludd’s presence in France and the Middle East with Amadis’ base in North America.

TRAFiX LLC has agreed to acquire Integrated Transaction Systems Ltd. and ITS Online Ltd. (ITS), a provider of trading applications, connectivity, and smart order routing for the Canadian capital markets. The deal expands TRAFiX’s products and services in Canada and strengthens the combined offering across OMS/EMS and FIX routing connectivity to access Canada, the United States, and EMEA markets.

Battery Ventures has agreed to make a significant strategic investment in Ascendant, a Toronto-headquartered cross-border business payments fintech. The investment will make Battery Ventures the primary investor upon closing and is intended to support Ascendant’s next phase of growth and product innovation, subject to regulatory approval.

NMI, a full commerce enablement technology company, acquired the payments solutions business of Agreement Express, a SaaS platform providing onboarding, underwriting, and risk monitoring capabilities for financial services and payments partners. The acquisition expands NMI’s merchant sign-up offering with enhanced underwriting and risk monitoring, while private equity firm Frontier Growth will continue to own Agreement Express’s wealth management arm. Financial terms were not disclosed.

WonderFi Technologies Inc. closed its previously announced acquisition of Blockchain Foundry Inc. (BCF), a North American blockchain development firm. WonderFi acquired 100% of BCF’s outstanding shares via a share-exchange transaction, integrating BCF’s blockchain/IP and products into WonderFi’s Web3 ecosystem across its Bitbuy and Coinberry platforms.

Bitcoin Depot (Lux Vending, LLC) announced it has previously consummated the acquisition of a majority equity interest in Bitaccess Inc., a provider of bitcoin ATM (BTM) operating system software. The deal supports Bitcoin Depot’s vertical integration strategy and expands its software capabilities across kiosk management, compliance, transaction processing, and cash management.

SingleKey, a Toronto-based fintech SaaS platform offering leasing and risk-management tools for landlords, acquired Naborly, a rental tenant-screening tool serving small landlords in the United States and Canada. The combination is intended to create a comprehensive offering that includes tenant screening data/technology (including AI) alongside rent protection and related support, with Naborly customers being onboarded to SingleKey without disruption.

Q2 Holdings, Inc. acquired Sensibill, a Toronto, Canada-headquartered provider of an AI/machine-learning platform that captures and enriches SKU-level transaction data for financial institutions. The deal, which closed on October 3, 2022, is intended to strengthen Q2’s data insights and machine learning capabilities and complement its Q2 Catalyst commercial banking suite. Financial terms were not disclosed, and INFOR Financial Group advised Sensibill.

Transact Campus acquired Canadian mobile ordering provider Hangry, an established partner whose platform is integrated with Transact’s campus commerce ecosystem. The deal is intended to enhance Transact’s mobile-centric campus interaction and commerce capabilities for higher education institutions; financial terms were not disclosed. Sampford Advisors served as Hangry’s exclusive M&A advisor.

FTX Trading Limited (FTX) entered into an agreement to acquire Bitvo, Inc., a Canadian crypto-asset trading platform and Alberta-based restricted dealer. The deal is intended to expand FTX’s regulated presence in Canada and is expected to close in the third quarter of 2022, subject to regulatory approval and customary closing conditions.

EVO Payments, Inc. acquired North49 Business Solutions, Inc., a certified Sage Development Partner, to enhance B2B integrated payment solutions for Sage customers. North49 provides accounts receivable and business automation tools with certified integrations for Sage 300 and Sage Intacct, expanding EVO’s ERP integration portfolio to include Sage accounting software. Financial terms were not disclosed.

Coinweb, a layer-2 cross-computation platform, announced it has acquired FINTRAC-registered OnRamp Technologies Limited, a payments company with Canadian Money Services Business (MSB) consents. The acquisition enables Coinweb to offer regulated fiat on/off-ramps and virtual currency exchange/transfer services in Canada, supporting its broader North America expansion.

Hardbacon, a Canadian personal finance application and comparison platform, acquired Simplerate.ca to expand its credit card and rewards content and strengthen its position in Canada’s rewards and credit cards market. Hardbacon will continue operating Simplerate.ca and add its proprietary comparison tools to help visitors compare credit cards and other financial products. Financial terms were not disclosed.

Paystone acquired Canadian Payment Services (CPS), a fast-growing provider of Canadian merchant services, to expand its bank-independent payment processing scale and add CPS’s merchant base. The deal is described as Paystone’s largest acquisition to date by revenue and clients and represents the sixth acquisition in its recent roll-up strategy.

Zafin, a cloud-native SaaS product and pricing platform for banks and credit unions, has acquired FINCAD, a provider of pricing and risk analytics for derivatives and fixed-income products. The deal expands Zafin’s analytics and capital markets capabilities and broadens its global client base and footprint. Following the acquisition, FINCAD will operate as Zafin’s Capital Markets Group under the FINCAD brand.

WonderFi Technologies Inc. entered into a definitive agreement to acquire First Ledger Corp., the parent company of Bitbuy Technologies Inc., a leading Canadian cryptocurrency marketplace. The deal implies an aggregate transaction value of approximately $206 million, paid through a mix of WonderFi shares and cash (including deferred cash via a vendor-takeback note). Upon closing, Bitbuy will be integrated into WonderFi to expand its regulated crypto and DeFi consumer platform offering in Canada.

OFX Group Limited entered into an agreement and subsequently completed the acquisition of 100% of Canadian corporate foreign exchange and global payments provider Firma Foreign Exchange Corporation for total consideration of C$90 million (A$98 million). The deal expands OFX’s scale in corporate cross-border payments in North America, adding over 9,600 corporate clients and materially increasing OFX’s corporate segment revenue, with Firma’s UK business closing pending regulatory approval.

smartTrade Group, backed by majority investor Hg, acquired Toronto-based TickTrade Systems Inc., a provider of FX trading and payments SaaS solutions for financial institutions. The combined business will operate under the smartTrade name, with smartTrade CEO David Vincent leading the group, while TickTrade co-founders Baha Ohcebol and Alexander Culiniac remain in senior management roles and significant investors. Financial terms were not disclosed.

Mogo Inc. closed its acquisition of Canadian registered investment dealer Fortification Capital Inc. following IIROC and related regulatory approvals. Fortification will be renamed MogoTrade Inc., providing Mogo with dealer licenses, registration, and trading technology to accelerate the launch of its commission-free stock trading platform. The purchase consideration included cash payments and 75,000 common shares of Mogo.

Penn National Gaming, Inc. entered into a definitive agreement to acquire Score Media and Gaming Inc. (theScore) for approximately US$2.0 billion in a cash-and-stock transaction, aiming to combine theScore’s digital sports media, betting platform, and technology with Penn’s gaming ecosystem. The deal was structured as a British Columbia arrangement and was later completed via Penn subsidiary 1317774 B.C. Ltd., with theScore headquartered in Toronto, Ontario.

PayFacto Payments Inc. announced an equity investment of up to C$150 million led by Flexpoint Ford, with participation from BMO Capital Partners. The growth equity financing will be used to accelerate PayFacto’s expansion—particularly in the United States—by enhancing its payments and POS technology suite, launching a cloud-based POS system, and funding future acquisitions.

Prophecy DeFi Inc. completed the acquisition of a 60% stake in Layer2 Blockchain Inc. The consideration consisted of 25,000,000 Prophecy DeFi common shares issued to Layer2 shareholders on a pro rata basis. The investment is intended to provide capital and resources to expand Layer2’s decentralized finance (DeFi) operations across liquidity provisioning, market making, staking, validation, and related infrastructure.

Cybernetic Technologies Ltd (OTC: HPIL) announced that it has acquired World Gaming Group Inc. World Gaming Group has been involved in blockchain projects and developed the tokens “GAMEZCASH” and “TUNEZCASH,” intended for use as currency in esports/gaming and the online music industry.

Quadient signed a definitive agreement to acquire a c. 96% majority stake in Beanworks, a SaaS fintech focused on accounts payable automation. Beanworks, headquartered in Vancouver, Canada, will add cloud-based AP automation capabilities to Quadient’s software portfolio, complementing its prior AR automation acquisition YayPay. The deal is valued slightly above €70 million and is expected to close on March 23, 2021, with two key leaders retaining minority equity initially.

Fattmerchant, an integrated payments technology provider based in Orlando, Florida, announced a strategic investment in Fusebill, a cloud-based subscription billing and payments platform headquartered in Ottawa, Canada. The partnership aims to combine capabilities in automated subscription billing and payments, expanding product features and supporting growth for both companies’ customers and ISV partners.

IBM acquired Montreal-based fintech company Expertus Technologies Inc. to strengthen IBM’s end-to-end digital payments capabilities and advance its hybrid cloud and AI strategy. Following the deal, Expertus becomes part of IBM Global Business Services, adding payment platform (PaaS) capabilities and SWIFT processing services to support payment modernization for financial institutions.

Affirm entered into a definitive agreement to acquire PayBright, a Canadian buy-now-pay-later provider, for approximately CAD $340 million in cash and equity. The deal is intended to expand Affirm’s presence in Canada by combining the companies’ merchant networks across the United States and Canada. The transaction is expected to close in the first quarter of calendar year 2021, subject to customary closing conditions.

Mogo Inc. has reached a definitive agreement to acquire Carta Solutions Holding Corporation (Carta Worldwide) in an all-stock transaction via a plan of arrangement. The deal expands Mogo into the global B2B digital payments market and creates one of Canada’s largest vertically integrated fintech companies.

Platform Partners LLC announced an investment in E-xact Payments, LLC, a provider of integrated payment gateway services for bank partners, software platforms, and omnichannel merchants. As part of the transaction, Platform is partnering with payments executives including Rahul Gupta (who will invest alongside Platform and serve as Chairman) and the existing E-xact founders to support growth initiatives.

Great Hill Partners, through an affiliate, acquired all outstanding common shares of VersaPay Corporation via a statutory plan of arrangement under the Canada Business Corporations Act. VersaPay shareholders received C$2.70 per share in cash, valuing VersaPay’s fully diluted equity at approximately C$126 million, and the transaction closed on February 21, 2020.

Deluxe Corporation signed an agreement to acquire RDM Corporation, a Waterloo, Ontario-based provider of remote deposit capture software, hardware, and digital imaging solutions. The transaction was completed on April 4 following shareholder and Canadian regulatory approval, and is intended to enhance Deluxe’s WAUSAU Financial Systems treasury management solutions offering.