Investment firm EQT, through EQT VIII fund and EQT Ventures fund, reached an agreement with Saxo Payments Banking Circle founders to acquire the assets, the company said. Banking Circle processes an estimated $70.5 billion in cross-border payments a year, and works directly with partner banks for direct clearing access.
EQT said it will focus on continued growth of Banking Circle in existing and new markets. The unit will continue to be led by Banking Circle’s existing management team, including co-CEOs and Founders Anders la Cour and Laust Bertelsen, the press release noted.
Saxo Bank Founder and CEO Kim Fournais said in a statement, “As investor and incubator, we have supported the company with our core competencies in foreign exchange, as well as developing and managing global FinTech solutions. It is not an easy task to build FinTech solutions that create value and are long-term sustainable, but the company has done what few succeed in.”
Fournais added, “We see EQT as the ideal partner for the next part of the journey and we are confident that Saxo Payments Banking Circle will thrive and continue its impressive growth trajectory.”
In a joint statement, la Cour and Bertelsen thanked Saxo Bank for their past partnership and said they will continue to collaborate closely with the firm.
The companies said they expect the transaction to close in the fourth quarter of this year. The deal will require regulatory approval.
Data released by East & Partners in early 2017 found Saxo Bank is among several non-bank players taking market share away from traditional banks in the U.K., in the corporate FX and cross-border payments market. Saxo, along with Western Union and American Express, landed in the top-five list of non-bank providers in the industry.