Equals Money and Railsr have officially combined to form one of the largest embedded finance providers in Europe.
The consortium of funds managed by TowerBrook Capital Partners LP, funds managed by J.C. Flowers & Co, and Railsr shareholders led by D Squared Capital and Moneta, has completed its acquisition of Railsr.
The acquisition closely follows the consortium’s take-private of Equals, and marks the official combination of the two fintechs.
The newly-combined group will initially operate under their existing brands, with co-chief executive officers and will offer businesses a way to embed financial services into their products.
The transaction combines Equals Money’s offering in multi-currency accounts, FX, corporate cards, and financial solutions with Railsr’s embedded finance, Banking-as-a-Service, and Cards-as-a-Service infrastructure to create one of the largest embedded finance platforms in Europe.
The newly combined group is backed by majority investors TowerBrook Capital Partners LP and J.C. Flowers & Co, Lingotto Investment Management, through its Lingotto Horizon Strategy, also co-invested with J.C. Flowers & Co.
Ian Strafford-Taylor, chief executive officer of Equals Money and co-chief executive officer of the new entity, said: “Today marks an exciting milestone in our journey. By joining forces with Railsr, we are enhancing our ability to deliver flexible, scalable financial services that empower businesses of all sizes.
“Our customers will benefit from expanded capabilities, a stronger global presence, and a commitment to continuous innovation.”
Philippe Morel, chief executive officer of Railsr and co-chief executive officer of the new entity, added: “This transaction will create an embedded finance leader with a strong balance sheet and real critical mass, positioning us to provide enhanced products and services to our customers while promoting financial stability and compliance in an otherwise fragmented sector.”
Lord Philip Hammond, chair of Railsr and the newly-combined group, said: “The combined Equals-Railsr business will be a major player and tech leader in embedded finance across the UK and Europe. I look forward to the business delivering strong growth and ground-breaking innovation in this dynamic area of fintech services in the years ahead.”
Over the coming months, Equals Money and Railsr said they will “work closely to integrate operations while ensuring uninterrupted customer service”, and in the meantime, existing services will continue, with clients to receive updates as enhancements are rolled out.
