In a move that will further seal its place as a payments juggernaut in the African continent, Interswitch has acquired Vanso for a total value of ₦15 billion (in stock and cash).
At the current exchange rate, that amounts to around $50 million. A reliable source has confirmed the deal adding that Vanso initial asking price was in the region of $80 million. The deal will see Interswitch acquire all Vanso’s assets including management staff.
Vanso provides mobile and internet solutions for Nigerian banks. It has been doing so for almost 13 years. Virtually every Nigerian mobile banking app is based off Vanso’s solution. With this acquisition, Interswitch will be able to leverage Vanso’s robust technology and relationship with local banks to further expands its reach within the local FinTech sector.
Everything appears to be working according to plan for Interswitch, especially as the company is reportedly on the verge of an IPO worth $1 billion. If we were to hazard a guess, everything Interswitch has done over the past year — including the establishment of the N10 million ePayment Growth fund, which saw ACE and SlimTrader as beneficiaries — has a lot to do with the potential billion-dollar IPO.
If everything works as planned, we could well be seeing the first billion dollar Nigerian tech company before 2016 runs out.
Nigerian startups raised $17.6m in Q1 2019, 8.5% higher than they did in Q1 2018. Find out more in the latest quarterly edition of the Nigerian Startup Funding Report here.