Canadian fintech Mogo has received the go-ahead from its shareholders to acquire digital payments company Carta Worldwide.
According to the company’s statement, Mogo shareholders and Carta Worldwide securityholders approved the acquisition of Carta Solutions Holding by Mogo, at separate meetings held on 15 January 2021.
The transaction was approved by 99.78% of the votes cast by the shareholders.
Mogo will issue ten million common shares to Carta, which is subject to downward adjustment based on the minimum working capital and cash required by Carta.
As of 27 November 2020, a total of 9.4 million shares were voted, representing nearly a 31.33% stake.
Subject to the receipt of approval from the Ontario Superior Court of Justice, the deal is expected to complete by 25 January 2021.
Carta’s acquisition will allow Mogo to tap into the $2.5trn global payments market.
It will boost the growth of its subscription and transaction-based revenue and strengthen its digital wallet capabilities.
This includes the development of peer-to-peer (P2P) payment solution which the company aims to launch this year.
About the companies
Mogo provides consumers with access to innovative financial products including Bitcoin trading through its mobile app.
Carta’s digital payments platform powers over 100 card programmes and offer processing technology to businesses across Europe and North America.
Mogo CEO David Feller said: “We are pleased to have the overwhelming support of shareholders for this transformative transaction.
“We look forward to completing the acquisition later this month and working with the Carta team to take advantage of the massive opportunity in front of us created by the accelerating shift to digital for financial services.”