Cambridge data driven commerce specialist Bango has acquired the global payments arm of NTT DOCOMO. It virtually doubles the size of Bango at a stroke.
Bango has also signed a long-term platform deal with NTT DOCOMO to provide payment services in Japan for the world's largest merchants. The gross consideration is €4 million – funded using existing Bango cash. But it brings an extra $3.5 billion a year of End User Spend onto the Bango Platform, taking the total EUS to nearer $8bn.
There are more upsides. The transaction enables payment for consumers in 40 countries around the world through global operators including O2 Telefónica, Vodafone, Deutsche Telecom and América Móvil.
This seamless technology is delivered by a team of tech talent in Cambridge, with 130 people working at the company which was founded in the dotcom era of 1999.
DOCOMO Digital provides payment services to app stores and digital merchants worldwide in the fastest growing payments segment.
The acquisition further significantly accelerates the Bango strategy for growth by expanding global partnerships with major customers, doubling the number of Google Play and Amazon routes.
And it consolidates Bango's position as a leading payments platform for global merchants including Netflix, Britbox and Youtube and brings new merchants including Tidal, Discovery, Paramount+ and Jetstar.
At completion of the deal, DOCOMO Digital had a cash balance of €3.1m and the acquisition is expected to be earnings accretive in the first full year (FY2023) and materially earnings accretive once the integration has been fully completed.
Bango strategic partner and shareholder, NHN Corporation, has stated its intention to offer Bango a $10m three-year term loan on commercial terms. If Bango chooses to accept the NHN Loan, terms would be finalised at that time. This additional funding would be used to accelerate the restructuring and migration if required.
Bango CEO, Paul Larbey, said: “Acquiring DOCOMO Digital strengthens our position as a world leader in data-driven commerce. The decision by NTT DOCOMO to transfer its global payments business to Bango is a major endorsement of our technology in the fast-growing digital economy.
“Through the Bango Platform, telcos can leverage the universal appeal of the world's biggest online brands and digital merchants can immediately reach new customers. Both will benefit from data-driven insights, giving consumers greater access to goods and digital services.”
Bango Executive Chair, Ray Anderson, added: “After many years competing with DOCOMO Digital we know the business and the team well. This acquisition is a key, strategic deal for Bango and solidifies our leadership in the market.
“With the support of NTT DOCOMO, DOCOMO Digital developed relationships with high-quality operator and merchant customers and we are excited to bring them the benefits of the Bango Platform.
“These new merchants and operators will also offer new opportunities for everyone already connected to Bango. In addition, the acquisition brings the advantages of a partnership with NTT DOCOMO, further supporting our global growth.”
The UK Government was quick to hitch its horses to the Bango bandwagon. Business Secretary Kwasi Kwarteng, said: “We are backing British businesses to grow on the global stage, particularly in flourishing industries like financial technology, as evidenced by the sterling growth of flagship British companies like Bango.
“This acquisition only further builds on the UK’s reputation as a global centre for FinTech, and we will continue to create an environment where innovative businesses can expand at scale, boosting jobs and our economy.”