GoLogiq completes $320M merger with GammaRey
GoLogiq and GammaRey have teamed up to access the Generation Z wealth management market.
The companies announced the completion of the $320 million deal on Tuesday (January 3), after reporting plans to merge last month.
“The combined company plans to initially focus on the high-growth wealth management market for Generation Z and millennials,” GoLogiq said in a press release. “This new generation of wealth builders represents the sharing economy that will be powered by digital banking solutions, such as virtual payments, lending and loyalty, all contained within a single, easy-to-use mobile application or embedded finance solution.”
The merger makes GammaRey, a financial solutions platform, a wholly owned subsidiary of GoLogiq, a consumer data platform, the release said.
Meanwhile, GoLogiq said in the release that chairman Brent Suen has been named interim CEO, taking over for Matthew Brent, who has left to take an executive position at a video game publisher.
“Through this highly synergistic merger, we will have achieved our goal for GoLogiq to become a comprehensive FinTech platform for underserved businesses and consumers that generates strong revenue growth and cash flow,” Suen said in the release. “We see great opportunities ahead as we integrate our respective powerful fintech platforms and lay the foundation for continued growth and profitability in the new year.”
The companies said in the release that their combined forces will help them offer services to younger consumers, who have seen their assets increase from $2.9 trillion to $3.6 trillion.
These consumers have typically been underserved, David Dindi, CEO of global investment firm Atomic, told PYMNTS last summer.
“Most of them have felt that investing is not for them because the traditional investment providers such as large brokerage houses and asset managers have not made a significant effort to appeal to them, since they have not been seen as significant customers,” Dindi said.
On the flip side, FinTechs, neobanks and other consumer-facing businesses have recognized that these younger customers offer a wider potential customer base. However, they arrive on the investment services scene with extremely limited resources.
“Typically, the obstacles that companies face, especially those that have already established a relationship of trust with their clients and want to offer investment services, is that investing is a complex, highly regulated activity that requires significant development,” Dindi added.
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