Mogo buying Carta Solutions in all-stock deal valued at $24.2 million, companies say

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Also known as Carta Worldwide, Carta’s technology processes some 100 card programs in Europe, Asia and Canada, generating $8.5 million in 2019 revenue, with 85 per cent of that outside of Canada, Feller said. One of its key clients is London, U.K.-based tech unicorn TransferWise, he said.

Shares in Mogo were up more than 15 per cent at $2.79 in late afternoon trading on the TSX.

Feller began the fintech company with his twin brother, Dave, with a goal of disrupting Canada’s major banks with financial services on apps. Besides loans, its consumer-focused products include a Visa Platinum Prepaid Card featuring automatic carbon offsetting, free identity fraud protection and credit scoring as well as ways to invest in the burgeoning area of Bitcoin, the CFO said.

Mogo’s largest shareholder at 18.6 per cent is Wekerle, who also counts the remodelling of the legendary El Mocambo club in Toronto as one of his ventures.

Postmedia Network, which owns the Financial Post, holds equity warrants in Mogo as part of a business collaboration.

The common shares produced by the Carta takeover will go into a limited partnership that will not begin to be distributed to current Carta shareholders until December 2021 or earlier if the 10-day volume-weighted average price of Mogo shares on the TSX equals or exceeds $7.45 per share, the companies said. On a pro forma basis, Carta shareholders will own approximately 18 per cent of Mogo’s fully diluted shares, they said.

“By using Carta’s payment processing engine, we expect to enhance Mogo’s digital wallet capabilities which includes the development of our upcoming peer-to-peer payment solution,” CEO Dave Feller said in a statement. “When combined with our digital front-end capabilities, we see great opportunity to power the next generation of platforms globally.”

Financial Post



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