Fintech Demica swallowed by American giant FIS in $300m deal
13 December 2024, 10:51 | Updated: 13 December 2024, 11:17
Another leading technology company is being swallowed up in a transatlantic takeover that will underline the scale of the raid on some of Britain’s most promising businesses.
Sky News has learnt that Demica, which is one of the UK's largest providers of supply chain finance, has agreed a deal with FIS, the $46bn New York-listed tech giant.
Sources said on Friday that the deal was estimated to be worth in the region of $300m (£237m).
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An announcement about the deal is expected in the coming days, they added.
It comes a decade after Demica, which now has roughly $40bn in assets under administration, was sold to a consortium of private investors comprising JRJ Group, TomsCapital and 76 West Holdings.
One analyst said that a sale in the region of $300m would have crystallised a successful exit for the shareholder syndicate.
Demica, which works with banks and major companies to fund working capital provision, has grown steadily in recent years, with compound annual growth of assets on its platform of 40% since 2016.
Among its banking partners are HSBC, Lloyds Banking Group and Standard Chartered.
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"These figures reflect Demica's position as a long-term partner to institutions in this sector, supporting sustained growth as global appetite for supply chain finance continues to expand," Matt Wreford, Demica's chief executive, said earlier this year.
"More and more trade banks see our technology as a route to provide increasingly innovative products and services to their customers, while our corporate clients benefit from the scale and flexible liquidity which has been more necessary than ever in 2024."
The takeover of another leading British fintech will come during a period of growing scrutiny on the scale of the transfer of technology ownership to overseas companies
A Demica spokesman said the company did not comment "on rumour and speculation", while FIS could not be reached for comment.
(c) Sky News 2024: Fintech Demica swallowed by American giant FIS in $300m deal
