FinTech: Tech Giant Yandex To Acquire Pole Position In Russia’s Fintech Industry
Yandex will pay $5.5 billion to acquire online bank Tinkoff.
Investors made a bee-line for the stock of Russian technology giant Yandex (NASDAQ: YNDX) after it bid Tuesday for Tinkoff, a leading online bank in the country. Yandex shares touched a record high after analysts and investors apparently thought it was a marriage made in heaven. (The Moscow Times)
The company’s shares have been on a moonshot after its bid for Tinkoff became public on Tuesday evening. The stock traded above 5,300 rubles ($69) — at an all-time high and almost triple what it was a year ago.
It has often been dubbed as “Russia’s Google.”
Agreement in principle: Yandex and TCS
According to MarketWatch, Yandex and TCS Group Holdings (LON: TCS) have agreed in principle to a deal whereby the former will acquire Tinkoff for $5.48 billion, payable in cash-and-stock.
The deal comes after Yandex agreed to terminate its joint venture with Russia’s largest state-owned bank Sberbank (MCX: SBER) in June. It raised enough funding thereafter to pile on $3 billion of cash on its balance sheet by end-June.
Fintech could be the missing piece in Yandex’s digital ambitions – it launched a financial super-app called YandexGo in August. The app allows the user to do everything from taxi booking and ride-sharing to groceries and food delivery.
The transaction to buy Tinkoff will also catapult Yandex to the top of the Russian fintech league.
The deal “offers Yandex a way to leapfrog into pole position in the Russian fintech space, making its ecosystem comparable with Sberbank’s,” said VTB Capital analyst Mikhail Shlemov. Besides, it was a quicker option to building a fintech from scratch.
Meanwhile, both companies are profitable. Though Yandex earned $180 million in profits last year, Tinkoff raked in over $500 million.
Many aspects of the businesses of both companies are similar or complementary.
Coupled with a common entrepreneurial mindset and aggressive growth plans, it is unsurprising that the merger is a “win-win.”
“We are the two best IT companies in the country and there can be a lot of synergy,” said Oleg Tinkov, Tinkoff founder and chairman.
Latest Alternative Investment News
The Brunel Pension Partnership has picked Ownership Capital, RBC Global Asset Management, and Nordea Asset Management to manage its new Sustainable Equities Fund of around £1.2 billion ($1.55 billion). Brunel…
CrowdProperty, a leading crowdfunder/lender to the U.K. SME property sector, has lent over £100 million to development professionals. The funding had a beneficial impact on the UK economy because it…
Ripple Labs, the San Francisco-based technology company that facilitates cross-border payments through the use of its blockchain solutions via RippleNet, will invest an undisclosed amount in Money Tap. Money Tap…
Earlier this year, Apple (NASDAQ: AAPL) acquired Vilynx, a Barcelona-based startup that uses AI and computer vision technology to analyze a video’s visual, audio, and text elements. Reportedly, the iPhone…