Fintech and consumer data analytics provider GoLogiq has signed a non-binding letter of intent to take full ownership of Swedish fintech Fram Venture 7 in an all-stock deal worth $6m.
The transaction also includes all of Fram Venture 7’s equity interest in its fully owned subsidiary DragonLend, a lending platform for profitable small and medium-sized enterprises (SMEs) in Vietnam.
Established in 2019, DragonLend offers short-term working capital finance solutions to profitable Vietnamese SMEs faster and easier.
The platform issued its first loan in 2020 and its clients are mainly involved in various supply chain verticals, including manufacturing, wholesale and distribution.
DragonLend CEO Max Bergman said: “We believe market conditions are perfect for DragonLend to rapidly scale its SME lending platform in Vietnam, especially given how the country’s small business sector has been experiencing strong economic growth.
“We now have assembled years of valuable data for our credit scoring model, which can rely on for driving profitable growth.”
Upon the fulfilment of certain earn-out targets, the total consideration of the deal will increase to $20m.
As per the terms of the letter of intent, the US-based company will also secure employment agreements with management.
According to GoLogiq, the acquisition of Fram Venture 7 will complement its existing fintech ecosystem, which includes a range of financial services from payroll services to retirement investing.
GoLogiq CEO Granger Whitelaw said: “The acquisition of DragonLend would further our expansion into Vietnam with a proven business lending service that is highly complementary to our fintech ecosystem.
”We see its scalable platform enabling us to expand into other emerging markets across Southeast Asia, such as Singapore and Thailand.”
Subject to a definitive agreement, the acquisition is expected to be closed in September 2023.
