Digital disruptor Mogo announces merger for accelerated growth

Fintech firm offers several financial services including investing

Digital disruptor Mogo announces merger for accelerated growth
Steve Randall

Vancouver-based firm Mogo Finance Technology has announced a merger that will help it accelerate its ambitions to dominate Canada’s fintech industry.

The firm will combine with Difference Capital Financial Inc. with Mogo shareholders owning around 80% of the combined entity on a fully diluted basis.

The combination will give Mogo access to approximately $9-10 million in cash and control of Difference’s portfolio of investments in some of the premier private technology companies in Canada, including Hootsuite and Vision Critical, which collectively have an estimated fair market value of approximately $24 million.

It is expected that the combined entity will be called Mogo Inc. and will be led by Dave Feller as chairman and CEO and Greg Feller as president, CFO, and director.

"This transaction enables Mogo to continue to invest in new products and innovation, building on our leadership position in the Canadian fintech space,” said David Feller, Mogo’s Founder and CEO. “We are excited by the opportunity that the Transaction presents for shareholders of Mogo and Difference and are very pleased to have the support of the Difference board. We look forward to working closely with the leadership team at Difference to complete the Transaction.”

Currently, Mogo offers its members several banking and other financial services including digital mortgage, consumer products through its MogoMoney service, and investments through MogoWealth which includes a crypto trading service which allows the buying and selling of bitcoin.

Shareholder value
The Transaction is subject to Mogo shareholder approval, regulatory approval and satisfaction of other customary conditions. The Transaction is expected to close in the second quarter of 2019.

“The merger with Difference strengthens our financial position and represents a significant opportunity to create value for shareholders of the combined entity,” added Greg Feller, Mogo’s President. “Difference has invested in many of Canada’s leading technology companies and Mogo has built a valuable distribution platform. Shareholders of both companies will benefit from improved financial flexibility as we execute on our strategy of partnering to bring best-in-class products to our more than 800,000 members.”