US-based banking technology provider Amount has announced the acquisition of SMB loan and account origination platform Linear Financial Technologies.
Amount did not disclose the financial value of the deal but as per media reports, the technology vendor paid $175m in cash and stock for Linear.
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Linear platform is designed to streamline account opening and lending for small business owners. The company was formed last year following the merger of fintech firms ODX and Fundation.
The acquisition will complement Amount’s portfolio of retail banking and buy-now-pay-later solutions for consumer loans.
The acquired firm counts Citizens Bank, PNC Bank, Fifth Third Bank, Bank of the West, and American Express among others as its clients.
Post completion, Amount will rebrand Linear to Amount Small Business. Linear CEO Sam Graziano will head the rebranded entity and join Amount’s executive team.
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By GlobalDataAmount CEO Adam Hughes: “In Linear, we saw an opportunity to pair Amount’s consumer banking solution and buy now, pay later technology with Linear’s small business banking solutions to help financial institutions simplify and streamline business processes to create new business opportunities and increase value for our clients.
“We admire what Sam and his team have built at Linear, especially as we share many of the same values when it comes to developing technology, with a heavy focus on bringing data and insights to the forefront, to improve customer experiences, business processes and risk management.”
Linear will take Amount’s headcount to nearly 600. The combined entity will expand its product suite of retail banking, B2C and B2B point of sale solutions, fraud detection solutions and embedded finance, among others.
Graziano said: “The foundational items necessary for success in SMB lending are akin to those in consumer lending – namely modern digital customer experiences, data aggregation, process automation and risk-based analytics. That is why the synergy potential from joining forces with Amount was obvious to us given their unmatched expertise and reputation in the consumer lending space.”
