Digital invoicing firm Tungsten announced late last year that it would be divesting its bank, which it had acquired only months prior. Now, nearly a year later, the FinTech company has announced a buyer.
Reports Wednesday (Nov. 16) said Tungsten Bank will go to Wyelands Holdings after receiving clearance from U.K. officials. The companies said they expect to close the deal Dec. 21 of this year.
Tungsten Bank was used to fuel the company's supply chain financing provided to small and medium-sized businesses. But with the company struggling to grow at a pace suitable for its owners and investors, Tungsten decided to divest its banking operations. Its board of directors announced last December that "operating a regulated deposit-taking banking license is incompatible with the pursuit of profitable growth."
Last year, Tungsten said it had reached an agreement to sell the bank for $45 million but did not disclose the acquirer at the time.
“We have undertaken a thorough self-assessment of all aspects of our business, which has given us great clarity on the strategic outcomes we desire and the paths we will take to achieve them,” said Chief Executive Rick Hurwitz last year. “These outcomes will improve our financial and operating performance, sharpen our focus on profitable business and increase our confidence in forecasting the timing of break-even and organic cash generation.”
With the bank now going to Wyelands, Tungsten said it will refocus its efforts on growing its eInvoicing operations.
Reports had said Tungsten was struggling to push past the regulatory red tape associated with operating a bank. In March 2015, Tungsten Bank received clearance to operate across the European Union, enabling businesses in the region to access Tungsten Early Payment, financing and other SME finance services provided by the company.