Argentine fintech company Ualá has reportedly agreed to acquire the country’s first digital lender Wilobank.
The move was reported by Bloomberg quoting sources with direct knowledge of the development.
The financial terms of the transaction were not divulged.
The deal will make the current owner, Eduardo Eurnekian, a local billionaire, a minority stakeholder in Wilobank.
Wilobank, which opened in 2017, had 240,000 savings accounts as of September, Bloomberg reported citing Central Bank data. The lender has also issued more than 170,000 debit and credit cards.
On the other hand, Ualá provides an array of services based on a prepaid card managed through a mobile app. It was founded by Pierpaolo Barbieri and has around 675 employees in Argentina.
Since Ualá launched its services in Argentina, the fintech has issued 2.7 million prepaid cards in the country.
The acquisition is expected to fuel its growth and provide access to more customers.
Reuters quoted Ualá as saying in a statement: “[The companies] will provide a solid platform for the expansion of Uala, giving it the possibility of continuing to strengthen its financial ecosystem with a broader range of services once Wilobank has been incorporated.”
After its last funding round in 2019, Ualá was valued at around $850m and $950m.