Dutch firm Mollie buys UK direct debit specialist GoCardless for €1.1 billion

Mollie, the Dutch payments company, is buying the UK-based GoCardless for 1.1 billion euros. The deal, involving both cash and shares, will create a fintech firm serving approximately 350,000 business clients.

Mollie became successful by providing a platform that integrates multiple payment methods on its clients’ websites, including online stores. The company also offers financial management services.

GoCardless, on the other hand, focuses on solutions that enable companies to process payments or recurring bank debits directly through bank accounts, without requiring a payment card.

Koen Köppen, CEO of Mollie, believes the acquisition of GoCardless will help drive further growth for the company. “Integrating their services into Mollie marks a major step in achieving our vision: one comprehensive platform for sustainable growth,” he states.

Hiroki Takeuchi, GoCardless co-founder and CEO, says the partnership offers a chance to set higher standards in Europe’s fintech industry and deliver greater value to customers through an integrated suite of products. This acquisition takes place amid a global decline in fintech valuations since their pandemic-era peak,

At present, Mollie serves roughly 250,000 businesses, and GoCardless around 100,000. The UK company relies heavily on open banking links, which enable third-party financial service providers to access payment information without going through a traditional bank.

The merger will result in a unified platform offering businesses “one-stop-shop” solutions that handle both card and direct bank payments. This unified platform may be particularly appealing for companies with recurring revenue streams, like subscription-based SaaS businesses, as the integrated technology helps minimize payment disruptions and smooth out cash flow.

Regulatory approval is still required for the takeover. Both companies anticipate that the transaction will be finalized by mid-next year. Most of the deal is typically executed through shares, with an additional portion paid in cash.

Mollie is supported by investments from large firms like Blackstone and EQT, which bolster the company’s financial foundation for the acquisition. Combined, Mollie and GoCardless create a company valued at approximately 3 billion euros.