Westpac banks big on local fintech
A multimillion-dollar investment has been announced by Westpac for a stake in listed company zipMoney, which will involve integrating the fintech’s services with the bank’s payments network.
Firms: Allens (Westpac); Arnold Bloch Leibler (zipMoney)
Deal: Westpac has subscribed for an approximate 17.11 per cent stake of zipMoney.
Value: $40 million
Key players: The Allens team advising Westpac was led by partner Vijay Cugati (pictured). Partners Alan Maxton, Benjamin Downie, Carolyn Oddie and Peter Haig also worked on the transaction.
The Allens team worked closely with in-house business development and strategic investments legal teams at Westpac.
Deal significance: Westpac’s equity investment in zipMoney has been described as one of the largest deals in Australia for a fintech company.
The $40 million equity investment grants up to 9.8 million performance options to Westpac, with the bank retaining an 17.11 per cent (approx) stake. Westpac will also have a right under the deal to nominate a non-executive director to the board of zipMoney.
The listed fintech offers consumers and merchants point-of-sale credit and digital payment services for both in-store use and online transactions. According to a statement released by Allens, who advised Westpac on its investment, zipMoney products service numerous industries.
The deal formalises a ‘strategic relationship’ between the bank and zipMoney, which will explore the integration of products and services across the Westpac payments network.
“The deal continues Westpac’s market-leading approach to investing in the Australian fintech industry to open new growth opportunities,” Allens lead partner Vijay Cugati said.
“We are pleased to have been able to support Westpac on its continued drive to harness innovation to provide customers with more options in the payments landscape,” he said.