Finstar, the international private equity group, announced that it had acquired an interest in Euroloan, a financial technology company based in Finland. The size of the stake or the deal remains undisclosed, but Finstar said in its press release that its first move as shareholder in the company will be to put €15 million ($16 mln) in funding at its disposal.
Established Regional Presence
Euroloan is a developer and provider of cloud banking services for individuals and online retailers located in several European countries. It said that it will use the funds to accelerate the development of new products in its pipeline. Among its current products is a Virtual Credit Card that offers users tailor-made credit and repayment plans. The firm also provides clients with instant payment, fully automated solutions. For corporate clients, Euroloan offers a range of payment solutions, both for online stores and brick-and-mortar outlets.
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For Finstar, the deal represents a further foray into the fintech market, in tune with global trends pointing towards the growing prominence this industry is gaining. The private equity firm manages assets worth $2 billion in a range of industries.
Commenting on the acquisition, Finstar’s Chief Executive Officer Nick Jordan said: “The company matches our strategic focus perfectly and we look forward to contributing to its development and delivering exceptional results.”
Euroloan’s Chairman Tommi Linfors, said: “Finstar’s financial strength and invaluable experience in the FinTech space will enable Euroloan to focus on further expansion while maintaining its financial stability.”
Finstar will have an option to expand its stake in the fintech developer, possibly even to a majority stake, if the partnership indeed leads to the mutual benefits expected by the partners, it should solidify both companies’ market position.