Cirralto Ltd (ASX:CRO) (ASX:CRO) is set to enhance its Spenda suite after completing the acquisition of Sydney-based fintech Invigo Pty Ltd
The company had signed a binding share sale agreement to acquire 100% of the issued capital of Invigo, subject to the satisfaction of conditions precedent under the share sale agreement.
These have now all been satisfied and Cirralto has issued 132,951,740 Cirralto shares to the shareholders of Invigo, utilising the company’s existing placement capacity.
Invigo platform
Invigo offers both buyer and seller initiated immediate payment of invoices raised by the seller or the buyer, pay-by-instalment or immediate supplier payment, for all business customers.
For the seller, this can be used as a tool to extend credit to customers and drive cash flow while for the buyer, it can be used to create liquidity in their business, smooth seasonal purchasing profiles and manage purchasing within credit limits.
Invigo generates revenue by charging customer fees as a percentage of the total transaction value and/or charging interest on customers borrowings.
Monetise existing technologies
The acquisition enables Cirralto to deliver multi-option payment services on more favourable terms to both the buyer and the seller, releasing higher margins to any seller and increasing the buying capacity of buyers.
It will also allow the company to reduce administration costs through the consolidation of credit and risk management into a single team.
Acquiring Invigo adds additional functionality to the Spenda suite, enabling the company to offer a broad range of payment products that can be easily integrated into any business.
The move will enable Cirralto to further monetise its existing technologies, fully integrate a range of funding options into its core platform, deliver multi-option payment services on favourable terms to both the buyer and seller, create AML/KYC economies of scale and enable free-flowing BNPL and Pay by instalment strategy in the B2B customer category.