Top Startup Acquisitions: Insights on Mixed-Deal Transactions and Success Stories
In the fast-paced world of startups, acquisitions can be a game-changing event for founders. When another startup offers to acquire your company through a mixed deal of shares and cash, it’s crucial to understand what lies ahead. Let’s explore some recent examples and break down the key considerations for founders facing this pivotal decision.
We looked at a number of recent “Mixed-Deal Acquisitions” to better understand their mechanics and what made the transaction “tick”.
1. Equilibrium (EQM.ai) Acquired by FiscalNote
How Startup Acquisitions Drive Growth and Opportunity
In August 2021, FiscalNote, a leading technology provider of global policy and market intelligence, acquired Equilibrium (EQM.ai), a Singapore-headquartered company specializing in Environmental, Social, and Governance (ESG) management automation software. While specific terms weren’t disclosed, this acquisition showcased the potential for startups to join forces in emerging markets like ESG.
Founded in 2019, Equilibrium had developed an industry-leading ESG management automation software that enables enterprises to improve their ESG performance, carbon accounting, and reporting with actionable insights through data and AI. This acquisition allowed FiscalNote to expand its ESG services and content offerings, complementing its existing capabilities through Oxford Analytica, another FiscalNote company.
Interestingly, FiscalNote itself later went public through a SPAC merger with Duddell Street Acquisition Corp. in July 2022, valuing the combined entity at approximately $1.3 billion. This trajectory highlights how being acquired by a growing startup can lead to unexpected opportunities for founders and early employees.
2. Revolut’s Acquisition of Nobly POS
In 2021, Revolut, a fintech startup, acquired Nobly POS, a company specializing in point-of-sale systems for the hospitality industry. This acquisition allowed Revolut to expand its services into the hospitality sector and strengthen its position in the business banking market.
As per a quote taken from Revolut’s site, George Urdea, co-founder and CEO at Nobly POS comments:
“We built Nobly to enable small business owners and their teams to better serve their customers. Joining Revolut opens the exciting possibility to take the merchant-consumer experience to the next level, by bridging the rich point of sale data with Revolut’s financial super app.”
Clearly joining forces with one of the most successful neo banks in Europe was an opportunity the cofounders found irresistible.
3. Papara’s Acquisition of Rebellion
In 2023, Turkish neobank Papara announced its acquisition of Spanish challenger bank Rebellion. This major acquisition, the first of its kind for Papara, propelled the company’s valuation to over $1 billion, elevating it into the ranks of FinTech unicorns in Europe. The strategic purchase of Rebellion was part of Papara’s ambitious global expansion strategy, providing the company an instant presence outside its home market for the first time. The transaction, a multi-million dollar deal involving both cash and stock, was brokered with Rebellion’s current owners, Beka Finance.
4. Rapyd’s Acquisition of PayU Global Payment Organisation (GPO)
Rapyd, a global Fintech-as-a-Service provider, acquired PayU Global Payment Organisation (GPO) for a total cash consideration of $610 million. PayU GPO is the payments and FinTech business of Netherlands-based Prosus. This acquisition aimed to help Rapyd significantly scale in Central and Eastern Europe and Latin America. Rapyd, a digital payment processing and infrastructure company, delivers end-to-end products covering the entire payment spectrum.
Sources
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