Sources note that a detailed announcement regarding the deal is expected in the upcoming days.
This acquisition comes a decade after Demica, which has USD 40 billion in assets under the current administration, was sold to private investors such as JRJ Group, TomsCapital and 76 West Holdings. The sale of USD 300 million notes a successful exit for the stakeholder syndicate.
Demica, which works with banks and major companies to fund working capital provision, has grown steadily in recent years, with a compound annual growth of assets on its platform of 40% since 2016.
The acquisition of British fintech firms by overseas entities has drawn increasing scrutiny due to concerns about technology ownership and national interests. The UK fintech sector remains a global leader, attracting substantial investment despite a decline in deal volume in 2024. However, the heightened interest in acquisitions, especially from foreign firms, has raised alarms about the strategic transfer of critical technology.
Total UK fintech investment hit USD 7.3 billion in the first half of 2024, up from USD 2.5 billion in the same period in 2023.
Despite the almost threefold increase, geopolitical uncertainty, high levels of inflation and the high interest rate environment have all contributed to more subdued levels of UK fintech investment, compared to the record highs experienced in 2021.
198 UK M&A, PE, and VC fintech deals were completed in H1 2024, down from 284 in H1 2023. Despite the fall in the total number of deals, the UK remains the centre of European fintech investment, with British fintechs attracting more funding than their counterparts in the rest of EMEA combined.
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