US financial services provider Remitly Global Inc. (Nasdaq: RELY) today announced that it has signed a definitive agreement to acquire Israeli-based financial services platform Rewire for $80 million in cash and shares. Both companies provide services for migrants wishing to transfer money abroad.
Founded in 2015 Rewire by CEO Guy Kashtan, CTO Saar Yahalom, VP R&D Adi Ben Dayan, and Or Benoz, the company has raised $62 million but has now been forced to merge with a rival due to the current tech crisis and the difficulties in raising fresh finance rounds.
Remitly held an IPO on Nasdaq last year and has seen its share price fall 75%, giving it a market cap of $2 billion. Rewire's investors will now receive Remitly stock as well as some cash.
Rewire’s remittance platform builds deep customer relationships and is geographically complementary to Remitly. Rewire’s customers create an account with which money can be stored to be remitted at any time. This approach deepens relationships with customers and provides additional flexibility and convenience. Rewire’s product development and engineering teams will also add further capacity and expertise to Remitly's team. Rewire has 130 employees, most of them in Israel.
Kashtan said, "We see a huge opportunity as we combine forces to accelerate the adoption of some of the innovative products we have developed to enhance the lives of customers sending money around the world and managing their finances."
Remitly cfounder and CEO Matt Oppenheimer said, "From the start, Remitly has focused on delivering trusted digital financial services to serve immigrant communities around the world. We share with Rewire a deep commitment to our customers and that mission. Peace of mind starts with a trusted means for sending money home for critical costs. Rewire accelerates our progress as together we will continue to bring to market trusted financial services that are inclusive and accessible to all." The transaction is expected to close in the second half of 2022.
Published by Globes, Israel business news - en.globes.co.il - on August 16, 2022.
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