The Canadian FinTech stocks we’ve identified are seen as potential takeover candidates in the nascent space
SmallCapPower | March 20, 2019: On Monday, Fidelity National Information Services (FIS) (NYSE:FIS) announced a US$43 billion merger with Worldpay Inc. (NYSE:WP), a UK-based payment processing company. This deal is the largest one thus far in the FinTech sector industry, and it comes on the heels of Fiserv’s (NASDAQ:FISV) $22B acquisition of First Data Corp. (NYSE:FDC) in January 2019. As FinTech companies are gaining market share in the traditional payments industry, banks and other big players are trying to filter out the competition. Today we have listed four Canadian FinTech stocks we believe may be potential M&A targets in this acquisitive space.
*Share prices as at close March 18, 2019, data obtained from S&P Capital IQ
Mogo Finance Technology Inc. (TSX:MOGO) – $3.41
FinTech
Mogo is a financial technology company that empowers consumers to manage and control their finances. The Company offers digital access to six products, including free monthly credit score monitoring, a Mogo Platinum Prepaid Visa card, and MogoMoney personal loans. With over 750,000 members, Mogo aims to become the go-to financial app. On March 12, the Company released Q4/18 and FY18 numbers, with consolidated topline of $16.1M, implying a 21% increase on a y/y basis.
- Market Cap: $81.2M
- 5-Day Total Return: -4.1%
- 30-Day Total Return: +11.44%
VersaPay Corp. (TSXV:VPY) – $1.41
FinTech
VersaPay provides cloud-based, invoice-to-cash solutions. The Company strives to provide superior customer service, quick payments, streamline financial operations, and reduce costs. VersaPay ARC is the new standard in collections management and accounts receivable to view invoices online, facilitate secure transactions, and more. It offers an AR solution that automates the majority of work involved in AR and collections. On March 12, the Company announced that it was named a leader in the IDC MarketScape, the IDC Marketscape: Wordwide SaaS and Cloud-Enabled Accounts Receivable 2019 Vendor Assessment.
- Market Cap: $61.5M
- 5-Day Total Return: -2.1%
- 30-Day Total Return: -2.1%
Goldmoney Inc. (TSX:XAU) – $2.11
FinTech
Goldmoney is a precious metals focused company that safeguards $1.8B of assets in over 150 countries. The Company offers a variety of services, including the sale and purchase of precious metals and storage through Goldmoney.com, and access to online jewelry purchases through Mene.com (TSXV:MENE). The Company offers secure payments in four precious metals and five fiat currencies. On March 14, Goldmoney announced its new payment integration partnership with Menē Inc., an online 24 karat jewelry brand, that enables Goldmoney clients to purchase products directly through their account holdings. On March 6, the Company announced that it is discontinuing its cryptocurrency platform.
- Market Cap: $165.4M
- 5-Day Total Return: -15.4%
- 30-Day Total Return: +30.3%
Glance Technologies Inc. (CSE:GET) – $0.16
FinTech
Glance Technologies owns and operates Glance Pay and Glance PayMe, two complementary smartphone payment applications designed to help merchants provide customers with digital rewards and quick secure payments. The Company has a strategic alliance with BIG Blockchain Intelligence Group Inc. (CSE:BIGG), a company that develops blockchain search and analytics solutions. It also has a strategic alliance and referral agreement with Merchant Advance Capital Limited Partnership, a company that provides alternative financing to small businesses in Canada. On February 28, Glance Technologies announced its launch of Real-Time Bill™, a new feature enabling users to view and pay bills in real time through their Glance Pay App, without needing to wait for a paper bill.
- Market Cap: $21.2M
- 5-Day Total Return: -3.1%
- 30-Day Total Return: -20.0%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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