Visa announced that it is going to buy the Swedish open banking platform Tink for €1.8bn. This will be a landmark acquisition for European tech and open banking.
This could be the third-largest M&A of a European VC-backed fintech, according to Dealroom data.
But, the announcement of Visa to buy Tink comes after Visa scrapped its $5.3bn bid. It was about absorbing data sharing fintech firm Plaid earlier this year following concerns from US regulators.
Tink’s cofounders Daniel Kjellén and Fredrik Hedberg said in a blog, “As we got to know Visa, it became clear that we share a common mission. It is to connect the financial world and accelerate the growth and adoption of digital financial services.”
Tink and Visa on the deal
Stockholm-based Tink started as a consumer app in 2012. Then it helped customers keep track of their personal finances. Later on, it pivoted to providing banks and other fintech players with its aggregation software. It went on to become Europe’s largest open banking company integrated with more than 3.4k banks and financial institutions and reaching millions of bank customers.
Post-acquisition, Tink will keep its brand, management team, and Stockholm headquarters.
Visa is committed to do all we can to foster innovation and empower consumers in support of Europe’s open banking goals. By bringing together Visa’s network of networks and Tink’s open banking capabilities we will deliver increased value to European consumers and businesses with tools to make their financial lives more simple, reliable and secure.
Al Kelly, CEO and Chairman of Visa
What does the investors have to say about the deal
Josh Bell is a general partner at Dawn Capital and a Tink investor. It said, “With Tink, Sweden has now produced Europe’s largest-ever fintech M&A. Hence, reflecting the world-class innovation, commercial excellence, and entrepreneurial talent we have found across the Nordic market. As investors in the company, we are delighted to have supported their successful journeys to new homes within corporations with a global reach. Thus, validating the relevance of the B2B tech coming out of Europe. We wish Tink continuing success in the next chapter of its journey.”
