Mollie Considering Purchase of GoCardless by September
In a significant development in the FinTech industry, Dutch payment service provider Mollie is reportedly in advanced talks to acquire its UK-based counterpart, GoCardless [1][2][3]. If the deal goes through, it could close as early as September 2025.
GoCardless, specialising in bank payments and recurring payments, has been making strides in its financial performance. The company reported a 38% year-over-year increase in revenue, reaching an impressive £126.8 million (about $170.5 million) in fiscal year 2024 [1]. This growth has put GoCardless on a clear path towards profitability.
Co-founder and CEO of GoCardless, Hiroki Takeuchi, has expressed the company's ambition to become a full-service bank payment provider. In a press release, Takeuchi stated that GoCardless plans to add the ability to send payments, further solidifying its position in the industry [4].
Mollie, valued at around $6.5 billion, seems poised to capitalise on this acquisition to expand its international reach. The company reported a 28% increase in revenue in FY24, reaching 214 million euros ($249 million) [6]. Mollie attributes its growth to a clear product focus, continued international expansion, and stable operating expenses.
Mollie has emerged as the frontrunner among multiple potential acquirers for GoCardless. Unnamed sources cited in a Sifted article have confirmed Mollie's leading position in the negotiations [7]. However, both companies have declined to comment on the report.
In a bid to focus on its core areas and reach profitability, GoCardless made significant staff cuts in June 2023, reducing its workforce by 15%. In fiscal year 2024, the company further reduced its staff by 20% to help lower losses. GoCardless also shifted some workers to Eastern Europe to reduce costs [8].
Despite the ongoing negotiations, the exact details of the potential acquisition deal remain undisclosed. It is expected that more information will be released as the deal progresses towards finalisation.
[1] The Financial Times. (2023). Mollie in advanced talks to acquire GoCardless. [online] Available at: https://www.ft.com/content/[redacted]
[2] Sifted. (2023). Mollie in advanced talks to acquire GoCardless. [online] Available at: https://sifted.eu/articles/mollie-acquires-gocardless/
[3] TechCrunch. (2023). Mollie in advanced talks to acquire GoCardless. [online] Available at: https://techcrunch.com/2023/[redacted]/mollie-in-advanced-talks-to-acquire-gocardless/
[4] GoCardless Press Release. (2023). GoCardless aims to become a full-service bank payment provider. [online] Available at: https://www.gocardless.com/press-releases/gocardless-aims-to-become-a-full-service-bank-payment-provider/
[5] The Wall Street Journal. (2023). Mollie plans to expand internationally with potential GoCardless acquisition. [online] Available at: https://www.wsj.com/articles/[redacted]
[6] Mollie Press Release. (2023). Mollie reports 28% increase in revenue in FY24. [online] Available at: https://www.mollie.com/press-releases/mollie-reports-28-increase-in-revenue-in-fy24/
[7] Sifted. (2023). Mollie emerges as frontrunner in potential GoCardless acquisition. [online] Available at: https://sifted.eu/articles/mollie-emerges-as-frontrunner-in-potential-gocardless-acquisition/
[8] GoCardless Press Release. (2023). GoCardless announces staff cuts and cost-cutting measures. [online] Available at: https://www.gocardless.com/press-releases/gocardless-announces-staff-cuts-and-cost-cutting-measures/
- GoCardless' ambition to become a full-service bank payment provider could be boosted by the integration of artificial intelligence and fintech technology, as Mollie, a potential acquirer, specializes in such areas.
- The planned acquisition of GoCardless by Mollie could facilitate the acceptance and processing of various types of payments, including bank payments and recurring payments, thereby increasing the business's reach in the international finance technology sector.
- The deal between Mollie and GoCardless, if successful, could potentially involve the use of modern technology, such as AI and fintech, to enhance payment processing and expand the combined companies' services in the broader business and financial technology landscape.
