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FIS acquires banking-as-a-service startup Bond

Consolidation continues apace in the world of fintech. FISthe fintech giant which manages a wide range of payment, banking and investment services, has acquired Binda startup specializing in integrated finance, multiple sources confirmed today.

Fintech Business Weekly’s Jason Mikula reported last week that the case was in progress. Our sources confirm that the deal is now complete, effective today.

The FIS does not share the amount it paid Binda BaaS (banking as a service) startup based in San Francisco. But as a reference, PitchBook notes that Bond was valued at $182 million the last time it raised, in 2020. Since 2019, Bond has raised a total of $42 million in funding, according to Crunchbase.

It has an impressive list of backers. Coatue Management led the company’s latest funding round, a $32 million Series A in 2020, which also included participation from Mastercard, Goldman Sachs, Canaan Partners, B Capital Group and former Morgan Stanley CEO John Mack.

BaaS, sometimes called integrated finance, helps brands (sometimes well outside the world of finance) to integrate financial services like credit cards and bank accounts to in turn sell these services to their customers.

Boasting “a AI-powered infrastructure,” Bond is working to help digital brands — including other fintechs such as Pocketbook and Everest — deliver “customized, compliant banking products.”

With approximately 30 employees, Bond has focused on building APIs and software enabling commercial and consumer credit card solutions, as well as debit cards and accounts.

According to an internal FIS memo seen by TechCrunch, FIS and Bond’s management teams will “determine how the two companies will work together,” including how FIS will integrate Bond’s capabilities into existing FIS relationships.

FIS SVP of Platforms Himal Makwana, in partnership with the company’s Integration Management Office, will lead post-purchase planning activities, the memo adds.

It’s unclear why Bond opted for a buyout, but the deal comes amid highly volatile times in the worlds of technology, venture capital funding and financial services. Funding activity largely stalled in the startup world compared to previous years, which partly contributed to the collapse of two large tech-focused banks.

It’s unclear what Bond’s financial situation was, but it’s worth noting that he hadn’t raised any funds since 2020, and in the middle a decline in fintech venture capital funding in particular, mergers and acquisitions may have become an attractive option for the startup.

On the other side of the equation, bigger incumbents like FIS, as well as bigger fintechs, have taken a number of steps to buy companies like fintechs to bolster talent and technology in a race. to update their own products and services in the midst of competition. countryside.

Earlier this year, Marketa acquired financial infrastructure startup Power Finance in a $275 million deal. JP Morgan closed its acquisition of Aumni. And the Brazilian fintech infrastructure company Pismo is reportedly being courted by Visa and Mastercard in a reported billion dollar deal.

Of course, not all M&A deals work out well, with the biggest often being the hardest to digest. FIS has completed one of the largest acquisitions ever in the payments world by acquiring WorldPay for c. $43 billion in 2019. However, this deal was never really a trump card. In February of this year, the FIS confirmed that it would run WorldPay.

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