Financial services firm Crédit Agricole agreed on Tuesday to pay an undisclosed amount to increase its share of France-based payment software provider Linxo Group to more than 85%.
The transaction will involve the company’s founders and directors to maintain shares but will allow its investors, including insurance firm Maif and financial services provider Crédit Mutuel Arkéa, to exit.
Linxo has created a personal finance app with 3 million users, but also provides software products spanning a range of banking areas including payment management, and insurance and banking application development.
The deal is being led by Crédit Agricole’s Payment Services subsidiary along with the company’s Fireca fund. The corporate intends to offer products for its customers that use Linxo’s financial data technology.
Bertrand Chevallier, Crédit Agricole Payment Services’ CEO, said: “The acquisition of this major banking aggregation player in France, a long-time partner of the Crédit Agricole Group, is an important part of our strategic aim of offering customers of the group’s banks innovative payment services that meet the highest market standards.
“Moreover, it represents a major contribution in terms of technology that will enable the group to take full advantage of the innovation opportunities offered by changes in regulations.”
Linxo had raised about $28m pre-acquisition, most recently taking $24m from Crédit Agricole, Maif and Crédit Mutuel Arkéa in 2017, two years after Fireca and Crédit Mutuel Arkéa had provided $2.2m in funding.
The company had previously received roughly $650,000 from investors including Crédit Mutuel Arkéa, Sagax and assorted angel investors. Earlier backers also include Scientipole Initiative and the state-owned Epic BPI-Groupe.
