NAB will buy neobank 86 400’s remaining shares for $220 million, a deal that will see the fintech's team of 120 staff combine with NAB’s UBank to create “scale, funding and capital to dramatically accelerate (its) growth”.
“From day one, our purpose has been to help Australians take control of their money. We’ve just rounded out an incredible year, delivered by our phenomenal team of only 120 people, and we’re only just getting started,” said 86 400 chief executive Robert Bell.
“This will significantly fast-track our growth, propelling our business, customer numbers and balance sheet to a position which would’ve otherwise taken five years.”
UBank will also gain the neobank's 85,000 customers and 320,000 accounts.
The transaction is subject to shareholder and regulator approval from Treasurer Josh Frydenberg, APRA, the ACCC and approval of the scheme by the Federal Court.
But if all goes to plan, the deal is expected to wrap up by the middle of the year.
NAB recently participated in the 86 400’s Series B Capital raise and currently holds 18.3 per of the neobank’s shares. 86 400’s independent directors have unanimously recommended shareholders vote in favour of the acquisition.
“UBank has a proud 12-year history of innovation as a pioneering digital bank and today serves more than 600,000 customers to help achieve their financial goals,” said UBank CEO Philippa Watson.
“Combining with 86 400 will bring together UBank’s established business and 86 400’s experience and technology platform to help us meet the changing needs of our customers. We are looking forward to having the 86 400 team join us to help deliver the next generation of simple, fast and mobile banking solutions.”
86 400 launched in September 2019, rolling out its digital mortgage for brokers a few months afterwards.