NEW YORK--(BUSINESS WIRE)--Urban FT, Inc., the industry leading SaaS-based digital banking platform, has made a bid to rescue troubled NASDQ-listed Digiliti Money Group, Inc. (NASDQ: DGLT), the mobile app technology firm. On Tuesday, August 15, The Board of Urban FT contacted the Digiliti Money chairman with a bona fide, all-cash purchase offer that would enable the company to continue to serve its customers and stave off potential bankruptcy proceedings. The acquisition, if accepted, would be funded, through Morgan Stanley, on behalf of Urban FT’s principal investor.
Urban FT has a strong track record of organic and acquisitive growth, demonstrating the ability to close acquisitions in a timely manner and to successfully merge the acquired entities into the enlarged business. This is evidenced by the acquisitions of companies including Wipit Inc. in 2015 and, more recently, iParse LLC, which closed last month within 90 days of first entering a terms sheet. The company has made known its appetite for additional acquisitions of transactional banking operators and providers of mobile, Web or other B2B services that serve community and regional financial institutions.
“Our goal in approaching Digiliti Money with an attractive and timely offer is to keep the business operating and viable as we consolidate the entities to leverage the savings from operational synergies,” says Urban FT COO Glen Fossella. “We believe that our cash offer—with the option for certain shareholders, at their discretion, to convert their Digiliti Money common stock to Urban FT common stock—represents the best benefit to all parties involved, most particularly the consumers who rely on the services of Digiliti Money’s clients.
“We’re able to move quickly to rescue Digiliti because of the support of the Urban FT board of directors and investors, and because we have a clearly defined acquisition strategy that focuses on businesses with strong client relationships, recurring revenues and technologies that deliver an additional competitive advantage to our core products and services,” Fossella continues. “Digiliti Money is within our acquisition parameters, and, ultimately, we believe will deliver an earnings-accretive outcome to all relevant stakeholders.”
According to Fossella, the acquisition is reasonably straightforward, with only the usual caveats of conducting satisfactory due diligence related to the operational, financial and legal affairs of Digiliti Money; Digiliti Money undergoing a satisfactory audit; and required legal, shareholder, regulatory and other third-party approvals.
“We’re prepared to move quickly, and we hope Digiliti Money will match our speed and commitment to completing this transaction,” he adds.
In recent weeks, the trade press has reported on Digiliti Money’s financial difficulties and the appointment of a new interim CEO to cut costs and seek funding in the face of declining revenue. On August 14, the company issued an update on its corporate activities, indicating it is “actively reviewing strategic options to restructure the company, including the potential sale of the company or potentially filing for Chapter 11 bankruptcy.” The company also disclosed that its independent accounting firm has withdrawn its 2016 yearend consolidated audit reports and revoked its consents to incorporate those reports in any and all registration statements.
About Urban FT:
Urban FT is a SaaS-based digital payments platform that enables any brand to seamlessly launch a branded Mastercard or Visa card, lifestyle mobile app and Web solution to complement its core business. We give brands a complete platform to enhance every element of the customer/brand relationship, leveraging what they’re doing today by adding a financial services framework, built on our unique understanding of driving the customer journey. Our platform enables brands to uniquely engage their customers, adding value by deepening and expanding how and when customers interact with the brand.