Factris Consolidates Factoring Market With Acquisition

Netherlands-based factoring company Factris has announced the completion of its takeover of Lithuanian firm DEBIFO, the companies said Monday (Jan. 14).

According to Factris, DEBIFO currently holds 35 percent of Lithuania’s alternative finance market with its invoice financing solution, targeted at small and medium-sized businesses (SMBs). Its takeover by Factris is part of the Dutch firm’s efforts to expand across Europe.

In addition to the closure of the takeover, Factris noted that Speedinvest and Optia Investments have provided support for additional merger activity, though it declined to say how much the firms provided. Factris also did not release financial details on its acquisition of DEBIFO.

In a statement, Factris CEO Brian Reaves said DEBIFO is “a really driven team that has achieved strong results in Lithuania. We are looking forward to fostering DEBIFO’s talent as Factris expands across Europe to become the leading working capital provider to [SMBs].”

DEBIFO CEO Justas Šaltinis, meanwhile, said the acquisition will enable the firms to provide “more competitive prices” for small business customers.

The deal follows last month’s closure of a $115 million credit facility provided to Factris by Switzerland’s Ruvercap, which will be used to finance the working capital provided to European SMBs using the Factris platform.

In August, U.S.-based Axiom Bank made its own acquisition in the factoring space with the takeover of Allied Affiliated Funding. In addition to Axiom integrating Allied’s factoring and asset-based lending operations, the deal sees Allied customers being connected to cash management and banking services by Axiom.

Last March, invoice financing company Invox Finance took a different route for growth, launching its token sale in Australia. Investors were able to use the token on the Invox Finance Platform, which allows buyers and sellers to connect, share data and invest in supplier invoices that need financing.