Australia’s Bendigo and Adelaide Bank has agreed to acquire fintech firm Ferocia for approximately $85m (A$116m) to augment its digital capabilities.

The deal will see the firms consolidate the ownership of Up, a digital banking app, which previously operated under a collaboration model and supports the lender’s core infrastructure.

The agreed consideration will be paid in shares, with a portion it being subject to future performance.

The lender noted that the acquisition will allow it to develop Up platform and expand its digital ecosystem, which was jointly launched by Bendigo and Adelaide Bank and Ferocia in 2018.

Bendigo and Adelaide Bank has also been working with Ferocia for the last nine years on building its e-banking app and internet banking platform.

As per the terms of the agreement, Ferocia’s team will join the bank and Ferocia will continue to operate independently as a standalone division.

Bendigo and Adelaide Bank managing director Marnie Baker said: “The announcement unites our strong customer, community and innovation heritage with Ferocia’s market leading digital capability to deliver all Australians world-leading digital banking experiences.

“Through our partnership, we have embraced Up as a strategic, digital testbed – reimagining new banking experiences for a new generation of customers – and its rapid growth has far exceeded all expectations.”

Ferocia co-founder Dominic Pym said: “The launch of Up ushered in a new digital banking age through a unique fintech and bank partnership. With a vision to be Australia’s number one consumer lifestyle brand, the time is right to scale Up through a deepened relationship and new product offerings from the Bank, whilst bringing Ferocia’s expertise to the rest of the Bank’s highly engaged customer base.”

Concurrently, the bank announced its results for the full year ending 30 June 2021. The lender has recorded a rise of 172% in statutory net profit of A$524.m and a 51.5% rise in earnings after tax at A$457.2m.