UBank, a virtual bank subsidiary of financial services firm National Australia Bank (NAB), has agreed to acquire 86400, an Australia-based neobank backed by NAB, for up to A$220m ($169m).
The deal will value 86400 at nearly $207m, according to SmartCompany. Payment service provider Cuscal currently owns a majority stake in the company, with NAB holding an 18.3% stake.
Founded in 2017, 86400 has created a mobile banking platform that allows users to access accounts they may hold across some 100 banking entities. Its app uses smart algorithms to display relevant data on expenses and savings patterns.
86400 began raising series B funding in July 2020 from investors including NAB and investment bank Morgan Stanley and closed the round at $24.5m later in the year, according to Australian Financial Review.
Morgan Stanley had led a $21.5m series A round for the company in April 2020 that lifted its overall funding at the time to $56m. An Australia-based superannuation fund and unnamed asset managers, high-net-worth individuals and family offices filled out the series A investors.
Anthony Thomson, chairman of 86400, said: “Coming together with UBank gives us the scale, funding and capital to dramatically accelerate our growth and reach even more Australians with our smarter approach to banking.
“It means we will be able to invest even more into developing smart products, experiences and services, helping our customers own their home faster and reach their goals sooner with smarter spending and saving.”
