FIS acquires banking-as-a-service startup Bond
Consolidation continues apace in the world of fintech. FIS, the fintech giant that runs a wide range of payment, banking and investment services, has acquired Bond, a startup specializing in integrated finance, multiple sources confirmed today.
Jason Mikula of Fintech Business Weekly announced last week that the deal is in the works. Our sources confirm that the deal is now complete, as of today.
FIS does not share the amount it paid for Bond, a San Francisco-based BaaS (banking as a service) startup. But as a point of 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.
He has an impressive list of contributors. Coatue Management led the company's latest 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 such as credit cards and bank accounts to in turn resell these services to their customers .
Showcasing "an AI-powered infrastructure", Bond is working to help digital brands, including other fintechs such as Pocketbook and Everest, deliver "personalized and compliant banking products".
With approximately 30 employees, Bond has focused on building APIs and software to enable 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 Enterprise Integration Management Office, will lead post-purchase planning activities, the memo adds.
It's unclear why Bond chose to be bought out, but the deal comes amid highly volatile times in the world 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.
Bond's financial situation is unclear, but it's worth noting that she hasn't raised any funds since 2020, and amid a drop in funding from fintech venture capital in particular, the mergers and acquisitions may have become an attractive option for the startup.
On the other side of the equation, the biggest incumbents like FIS, as well as the biggest 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. amidst the competitive landscape.
Earlier this year, Marqeta acquired financial infrastructure startup Power Finance in a $275 million deal. JP Morgan has completed its acquisition of Aumni. And Brazilian infra fintech company Pismo is reportedly being courted by Visa and Mastercard in a billion-dollar deal.
Not all M&A deals go well, of course, with the biggest ones often being the hardest to digest. FIS made one of the largest acquisitions ever in the payments world when it acquired WorldPay for around $43 billion in 2019. However, that deal never really tumbled. In February of this year, the FIS
Consolidation continues apace in the world of fintech. FIS, the fintech giant that runs a wide range of payment, banking and investment services, has acquired Bond, a startup specializing in integrated finance, multiple sources confirmed today.
Jason Mikula of Fintech Business Weekly announced last week that the deal is in the works. Our sources confirm that the deal is now complete, as of today.
FIS does not share the amount it paid for Bond, a San Francisco-based BaaS (banking as a service) startup. But as a point of 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.
He has an impressive list of contributors. Coatue Management led the company's latest 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 such as credit cards and bank accounts to in turn resell these services to their customers .
Showcasing "an AI-powered infrastructure", Bond is working to help digital brands, including other fintechs such as Pocketbook and Everest, deliver "personalized and compliant banking products".
With approximately 30 employees, Bond has focused on building APIs and software to enable 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 Enterprise Integration Management Office, will lead post-purchase planning activities, the memo adds.
It's unclear why Bond chose to be bought out, but the deal comes amid highly volatile times in the world 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.
Bond's financial situation is unclear, but it's worth noting that she hasn't raised any funds since 2020, and amid a drop in funding from fintech venture capital in particular, the mergers and acquisitions may have become an attractive option for the startup.
On the other side of the equation, the biggest incumbents like FIS, as well as the biggest 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. amidst the competitive landscape.
Earlier this year, Marqeta acquired financial infrastructure startup Power Finance in a $275 million deal. JP Morgan has completed its acquisition of Aumni. And Brazilian infra fintech company Pismo is reportedly being courted by Visa and Mastercard in a billion-dollar deal.
Not all M&A deals go well, of course, with the biggest ones often being the hardest to digest. FIS made one of the largest acquisitions ever in the payments world when it acquired WorldPay for around $43 billion in 2019. However, that deal never really tumbled. In February of this year, the FIS
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