Fintech firm finalizes acquisition of investment dealer as it aims to become the leading next-gen digital wealth platform
Fintech firm Mogo has completed its previously announced acquisition of Fortification Capital, following approval from the Investment Industry Regulatory Organization of Canada (IIROC) and other regulators.
“The acquisition of Fortification represents an important milestone towards the launch of our new commission-free stock trading platform, providing necessary components on the regulatory and technology side to complement our existing capabilities,” Mogo founder and CEO David Feller said in a statement.
Through its free app, Mogo provides Canadian consumers with the ability to make payments digitally, trade bitcoin, and access personal loans, among other basic financial products and services. Through the completed deal, Mogo has obtained licenses, registration, and technology – including market data processing and order management systems – to accelerate the development of its no-commission trading platform, MogoTrade.
“We’re still at the very beginning of the transition of wealth management in Canada to a modern mobile and digital-first experience, and we are hyper focused on building out the leading next gen digital platform,” said Mogo President Greg Feller.
The Fortification deal was finalized following the terms of a definitive share purchase agreement under which Mogo acquired all the issued and outstanding shares of Fortification in exchange for a $500,000 cash payment; another cash payment equal to Fortification’s working capital, plus repayment of the subordinated debt owed to the sole shareholder of Fortification; and 75,000 common shares of Mogo.
All the Mogo common shares provided in the transaction are subject to a four-month statutory hold. Half of the shares subject to a contractual six-month escrow restriction, and the rest are subject to a contractual three-year escrow restriction.
Prior to its deal with Fortification, Moga also acquired Moka, a savings and investment app that offers automated, fully managed flat-fee investor to Canadians from coast to coast.
“Canadians have over $8 trillion in financial assets, including more than $3 trillion in equities, mutual funds and ETFs, and our goal is to give them the best digital tools to better manage and grow their wealth,” Greg Feller said.
