Italy-based financial institution Banca Sella has announced that it has acquired fintech company Hype for EUR 85 million.
Still pending regulatory approval from the Bank of Italy, the deal intends to solidify the traditional banking model based on relationships and to optimise Hype’s position in the digital banking landscape.
Details of the transaction
According to the official press release, the Board of Directors of Banca Sella and its parent company, Banca Sella Holding, have submitted an offer for the 50% stake of Hype’s capital held by illimity Bank, based on the procedure outlined in the shareholders’ agreement of the joint venture. After getting the offer, illimity Bank decided to sell 50% of Hype, with this stake being acquired by Banca Sella for EUR 85 million. The amount of the purchase was determined by the evaluation of one of the experts indicated in the shareholders’ agreement.
The move, still subject to the approval of the Bank of Italy and other relevant authorities, comes as part of the group’s and the bank’s development strategy and focuses on further solidifying the positioning and plans of Banca Sella and Hype via the optimisation and integration of their offerings. Additionally, the deal centres on scaling competitiveness for both companies in complementary market segments, facilitating significant advancement.
Currently scaling growth in market share by centring on a traditional model based on personal relations, Banca Sella is set to be able to improve its position by meeting the needs, demands, and preferences of digital native generations and those who gravitate toward a fully digital, technologically-focused, and AI-powered experience by integrating Hype.
When it comes to Hype, the move will allow the company to grow its offerings while also benefiting from access to the branch network in accordance with the evolving needs of customers. The company is set to maintain the characteristics of its user experience.
Furthermore, the acquisition will support the improvement of investments in technological innovation and support the development of AI-based solutions, which in turn will provide customers with an augmented experience.
