On Wednesday, the value of DigiAsia Corp. (NASDAQ: FAAS) shares increased significantly on the US stock charts, closing at $2.26 after climbing 30.64%. A significant contributing factor to this notable gain has been the announcement of an acquisition proposal, which has sparked investor interest and market speculation.
DigiAsia Entered Into Definitive Agreement After An Acquisition Proposal
A legally binding term sheet has been signed by DigiAsia’s Singapore-based wholly-owned subsidiary, DigiAsia Bios Pte Ltd., regarding a possible purchase by PayMate India. Reputable investors like Visa and Lightbox support DigiAsia Bios as a top Fintech-as-a-Service (FaaS) provider in Indonesia, while PayMate is a notable participant in B2B payment solutions.
The proposed transaction values DigiAsia’s business at an enterprise worth of approximately $400 million. Following the acquisition, PayMate plans to invest up to $25 million in cash, with financing structures to be mutually agreed upon.
FAAS Will Conduct Due Diligence Process Jointly With PayMate
Both companies will engage in a collaborative due diligence process, which will involve identifying the appropriate transaction structure, negotiating definitive agreements, and obtaining the necessary corporate and regulatory approvals. This phase is expected to last up to 60 days, after which PayMate aims to initiate steps for listing the combined entity in India.
Partnerships for Financial Inclusion via Strategy
DigiAsia has also recently teamed up with PT Jalin Pembayaran Nusantara, a division of Indonesia’s state-owned commercial holding company Danareksa, in an effort to expand its operations. With an emphasis on impoverished populations, the alliance aims to raise financial inclusion in Indonesia.
The cooperation seeks to create novel financial solutions by utilizing DigiAsia’s (FAAS) Embedded Fintech as a Service platform together with Jalin’s vast network of over 52,000 ATMs. When taken as a whole, these programs should empower Indonesian consumers and merchants financially, greatly improving the country’s digital finance environment and stimulating regional economic growth.
