London-based fintech company Meniga is buying Sweden-based peer Wrapp for an undisclosed amount as it eyes growth in the Nordic region, it said on Thursday.
Meniga, which has raised $34 million since founded in Iceland ten years ago, and Wrapp are both providing merchants the ability to offer personalized rewards and cashbacks to consumers based on purchase behavior.
“The acquisition of Wrapp alone will further bolster growth and will be adding just over EUR 3 million in annual recurring revenues from rewards with substantial near-term growth potential in the Nordic region,” Georg Ludviksson, Chief Executive and co-founder of Meniga, told Reuters.
Wrapp shareholders, including Nordic banking group Nordea (NDAFI.HE) (NDASE.ST), are paid with newly-issued Meniga shares and will obtain up to 25 percent of Meniga depending on success metrics in the next few years. Other Meniga shareholders include Swedbank (SWEDa.ST), UniCredit (CRDI.MI), and Íslandsbanki.
Meniga, provider of digital banking technology with operations in 30 countries and over 75 global banking clients, had revenue of 12.6 million euros ($14.6 million) in its fiscal year ending in March last year.