Installments-as-a-service platform provider Splitit has secured an investment of $50 million from private equity firm Motive Partners.
This commitment is composed of two tranches of $25 million in exchange for the issuance of new preference shares, Splitit said in a press release.
The first tranche will be invested when shareholders approve the company delisting from the Australian Security Exchange (ASX) and redomiciling from Israel to the Cayman Islands, per the release. The second tranche will follow when the company achieves certain performance milestones and satisfied customary closing conditions.
This transaction has been unanimously accepted by Splitit’s board as they concluded that this is the best available option to create long-term value for their shareholders, according to the release.
Dawn Robertson, chair of Splitit, said in the release: “We are delighted to secure this significant capital commitment from a world-class private equity sponsor. Motive is the ideal partner to help us drive future value creation due to its extensive payments expertise, value-additive capabilities and deep industry relationships.”
Nandan Sheth, managing director and CEO of Splitit, added: “Attracting a strategic investor of this caliber is a testament to the quality of our team and our unique, innovative offering — especially given difficult market conditions for raising capital.”
The board concluded that the proposed transaction will provide access to significant growth capital that will strengthen its position, help it attract clients and partnerships, and invest in its technology platform, according to the press release.
In addition, the board found that it will provide it with a partnership with a private equity firm focused on financial technology, give it a more flexible operating environment and provide existing shareholders with optionality, the release said.
In recent news from Splitit, the firm partnered in May with Atlantic-Pacific Processing Systems (APPS) in May to deliver buy now, pay later (BNPL) options to merchants. The partnership will bring several new programs to market that combine the capabilities of APPS’ payment solutions and Splitit’s merchant-branded installments-as-a-service platform.
Earlier in May, Splitit and Visa partnered to offer merchants a BNPL solution that will be embedded within merchants’ existing credit card process, allowing them to offer the installment service to their customers.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More