ING to offload 85% of Cobase

Global financial institution ING is making strategic moves in the fintech sector by selling an 85% stake in its subsidiary, Cobase, to Alpha Group. This transaction, structured as a multi-million-pound deal, includes an initial consideration of £8 million, with the remaining shares set to be acquired through a performance-based earn-out arrangement between 2025 and 2028.

The rationale behind this transaction lies in the potential for amplified growth for both Cobase and Alpha Group, as they leverage and share their unique capabilities and experiences. Notably, analysis has revealed that 80% of Cobase’s existing client base aligns with Alpha’s own target market, underscoring the significant potential for mutual value creation.

Morgan Tillbrook, CEO and Founder of Alpha Group, expressed enthusiasm for the acquisition, highlighting the strength of the alignment between Cobase and Alpha’s business. He lauded Cobase’s technological prowess and affirmed his excitement about working together to accelerate the growth of both companies, delivering mutual value to their respective client bases.

Tillbrook stated, “Our strong cash generation has given us the opportunity to acquire this highly synergistic platform, and we will continue to analyse the market and review M&A opportunities within our wider capital allocation strategy.”

Cobase, founded in 2017 with initial funding from ING Ventures, emerged from the ING Accelerator program after successfully proving its concept. Going forward, Cobase will maintain its team and operate under its own brand and management structure. Its proprietary technology is expected to play a pivotal role in accelerating Alpha’s digital offering.

Jorge Schafraad, CEO and Founder of Cobase, expressed delight in joining Alpha Group, emphasising their shared commitment to client-centric innovation. He anticipates this partnership will unlock exciting opportunities for customers, partners, and the Cobase team. Schafraad reassured existing and new clients that all current services will remain in place, with plans to introduce additional features, products, and services in the near future.

This strategic move underscores ING’s commitment to exploring fintech opportunities and harnessing the potential for growth and innovation in the financial sector. As traditional financial institutions continue to collaborate with innovative fintech firms, the industry landscape evolves to meet the demands of a rapidly changing digital economy.