Alpha Group to acquire stake in Cobase

Alpha Group entered the conditional agreement which still needs to be approved by the Dutch Central Bank. According to Alpha Group’s press release, the initial consideration for the acquisition is GBP 8 million in cash, with the remaining stake to be obtained via a performance-based earn-out between 2025 and 2028.

The acquisition is expected to enable new opportunities for both Alpha Group and Cobase’s customers, partners, and teams. All current services will remain available for existing and new clients, while additional features, products, and services will be introduced in the future. 

As a cloud-based provider of bank connectivity technology, Cobase enables corporates to manage their banking relationships, accounts, and transactions in one platform. The company enables significant operational and financial efficiencies, specifically for international businesses with multiple banking counterparties globally. Moreover, Cobase allows enterprises to manage multiple platforms and integrations across a variety of banks, increasing the efficiency and visibility with which they manage their payments, cash management, and treasury functions.

Companies can use Cobase’s solution directly through its platform or via its off-the-shelf ERP connections, that incorporate services such as Oracle Netsuite, Microsoft Dynamics, and SAP S4/HANA.

Since its inception in 2017, ING has maintained a strategic association with Cobase, investing regularly in the company and providing connections to clients to consolidate its foundation. Headquartered in the Netherlands, Cobase benefited from significant investment from Credit Agricole Corporate and Investment Bank, Nordea, and the company’s technology partner Redmath BV. 

As Alpha Group and Cobase’s offerings are complementary, the acquisition aims to amplify one another’s growth by leveraging and sharing capabilities and experience. An analysis from Alpha Group showed that 80% of Cobase’s existing client base is within its target market, emphasising the potential for mutual added value.

Cobase will retain its team and continue to operate under its own brand and management, while the proprietary technology will aid Alpha Group in accelerating its digital proposition and enable an increased integration with clients. Additionally, Alpha Group will be able to provide more value to existing customers and increase wallet share and retention. As a result, the company’s ability to attract new customers will grow, and Cobase will leverage the scale and experience of its global sales team and the cross-selling opportunities with its client base.

Officials from both companies confirmed their commitment to growing their businesses, as well as their plans to develop new opportunities that will bring mutual value to their client bases. 

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