A strong banking and payments partnership has been sealed in Africa by the acquisition of Vanso by Interswitch. The two companies will combine front-end solutions and back-end infrastructure to become the market leaders in Africa for digital payments.
Vanso, Value Added Network Solutions, a mobile and security-focused financial technology provider, has announced an acquisition by Interswitch, leading pan-African digital payments and commerce company, according to Finextra.
The transaction will provide Interswitch with a market-leading mobile banking and payments solution provider in Nigeria, while Vanso can expand its product range and geographic reach. Vanso’s existing shareholders will become owners of the Interswitch group, aligning the long-term interests of both companies.
Group CEO Mitchell Elegbe commented on the acquisition: “The acquisition of Vanso, both a market leader in the mobile financial services industry and a strong and profitable business, is a great opportunity to combine our respective technology offerings and skill sets, driving growth in our business. By integrating operations, we not only secure access to new payment channels but a highly skilled leadership team as well, while Vanso now has access to new markets, a mutually beneficial step for both our companies.”
Vanso serves telecommunications and financial services clients by providing messaging, payments and banking solutions in Ghana, Kenya, Nigeria, Rwanda and other territories across sub-Saharan Africa. The Interswitch and Vanso partnership will be the leading African switching, billing, card, mobile money and mobile commerce solution, and it will provide an end-to-end holistic service, combining Vanso’s front-end solutions and Interswitch’s back-end infrastructure.
Vanso non-executive Vice Chairman Constantine ‘Labi Ogunbiyi will assume a place on the board of the Interswitch group. Denis O’Brien, Vanso cofounder and CEO, will assume a new role as the CEO for Interswitch’s digital payments business, and members of the Vanso senior management team will assume senior positions within the Interswitch system.
Richard Akerele, Vanso’s chairman and cofounder, said: “I am extremely proud of the Vanso team and all its staff in building a highly competent technology company. It is a testament to the capability of young Nigerian entrepreneurs who have a vision for our country and belief in themselves. I am a firm believer that the future of Nigeria and Africa rests in the hands of the younger generation, and I am delighted to have had the opportunity to have supported this endeavor since inception.”
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