M&A News | Feb 12, 2024

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Globalive Capital has officially entered into an agreement to acquire Wealth One Bank of Canada, a move that is currently pending regulatory and government approvals.

Anthony Lacavera, the visionary founder of Globalive Capital Inc., has once again made headlines, this time in the Canadian banking sector. Following his successful disruption of the telecom industry with Wind Mobile, Lacavera is poised to bring his innovative approach to banking with the acquisition of Wealth One Bank of Canada.

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• An article in the Wealth Professional reported that Lacavera had raised $51 million for a consortium bid through a special purpose vehicle to secure a 54% stake in Wealth One Bank with existing shareholders retaining a minority share, which has been navigating federally imposed national security conditions.  The deal is supported by a mix of Canadian and U.S. backers and could see further capital injections of up to $200 million in the future.
• With over $600 million in assets as of November, according to the latest filings with the Office of the Superintendent of Financial Institutions.
• This strategic acquisition is aiming to leverage Wealth One’s Schedule 1 banking license to provide Canadians with more choices in banking services, echoing Lacavera’s commitment to challenge and diversify industries that benefit from increased competition.

Addressing the Oligopoly

Lacavera criticizes the current banking oligopoly for stifling competition, leading to higher prices and a diminished experience for Canadian consumers. His bid for Wealth One is seen as a long-term strategy to introduce more competition into the market, which he believes is crucial for the economy.

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The focus is not just on serving the Chinese immigrant community, which was Wealth One’s initial target since its launch in 2016, but on expanding offerings to all Canadians, including the approximately 500,000 newcomers arriving each year.

Challenges and Regulatory Scrutiny

The bid comes amid national security concerns, with the federal government previously citing potential links between Wealth One and the Chinese government. This led to directives for three investors to sever ties with the bank. Despite these challenges, Lacavera is confident in the bank’s solid foundation and believes that the acquisition could alleviate regulatory and government concerns.

Outlook

Anthony Lacavera’s track record of innovation and disruption promises a future where competition is intensified, and consumers have access to a broader range of banking services. While regulatory hurdles loom, the acquisition aligns with the broader goals of enhancing financial inclusivity and choice for Canadians across the country.

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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• Source: https://ncfacanada.org/globalives-lacavera-acquires-wealth-one-bank/