Remitly to Acquire Rewire to Expand into Complementary Geographies with Account-Based Remittance Product
August 16 2022 - 9:00AM
Business Wire
Remitly and Rewire share a commitment to
transform the lives of millions of immigrants and their families
with the most trusted and innovative financial services
products.
Remitly Global, Inc., (NASDAQ: RELY) (“Remitly”), a leading
global digital financial services provider for immigrants and their
families, today announced that it has signed a definitive agreement
to acquire Rewire, an Israeli-based financial services platform for
migrant workers. Under the terms of the agreement, Remitly will
acquire Rewire for approximately $80 million consisting of a mix of
cash and stock.
Founded in 2015 with offices in Amsterdam and Tel Aviv, Rewire’s
remittance platform builds deep customer relationships and is
geographically complementary to Remitly. Rewire’s customers create
an account with which money can be stored to be remitted at any
time. This approach deepens relationships with customers and
provides additional flexibility and convenience. Additionally,
Rewire’s product development and engineering teams add further
capacity and expertise to a seasoned Remitly team.
“From the start, Remitly has focused on delivering trusted
digital financial services to serve immigrant communities around
the world,” said Matt Oppenheimer, Co-Founder and CEO, Remitly. “We
share with Rewire a deep commitment to our customers and that
mission. Peace of mind starts with a trusted means for sending
money home for critical costs. Rewire accelerates our progress as
together we will continue to bring to market trusted financial
services that are inclusive and accessible to all.”
“Rewire’s product enhances Remitly’s world-class remittance
platform to support our shared mission to transform the lives of
our customers,” said Josh Hug, Co-Founder and Chief Operating
Officer, Remitly. “Rewire’s product team has focused on solving
complementary problems remittance customers have, and we look
forward to partnering with them to deepen Remitly’s customer
relationships by solving these problems in a high-quality way.”
“We are thrilled to join the team at Remitly and continue our
important mission of making financial systems more inclusive for
migrants as we see the community-based approach we have taken to
build Rewire as highly complementary to Remitly’s approach,” said
Guy Kashtan, CEO and co-founder of Rewire. “We see a huge
opportunity as we combine forces to accelerate the adoption of some
of the innovative products we have developed to enhance the lives
of customers sending money around the world and managing their
finances.”
Remitly’s investments in its global remittance platform are
focused on delivering a trusted experience and peace of mind for
millions of customers around the world. While the footprint of the
platform continues to grow to more than 3,200 corridors, service is
localized allowing families to receive funds in a way that is best
for them.
Financial Details
The transaction is expected to close in the second half of 2022
and accordingly, Remitly does not expect material impact on its
revenue or adjusted EBITDA outlook this year. The $80 million
consideration includes cash and stock, subject to customary
adjustments. The transaction is subject to the satisfaction of
customary closing conditions, including regulatory approval of the
applicable Israeli and Dutch authorities.
Additional details and information about the terms and
conditions of the acquisition will be available in a current report
on Form 8-K to be filed by Remitly with the Securities and Exchange
Commission. For more information about Remitly, please visit
www.remitly.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact,
including statements regarding the anticipated benefits of the
transaction, are forward-looking statements. Forward-looking
statements are based on management’s expectations, assumptions, and
projections based on information available at the time the
statements were made. These forward-looking statements are subject
to a number of risks, uncertainties, and assumptions, including,
without limitation, risk related to the ability of the parties to
satisfy the closing conditions in a timely fashion or at all, risk
that a governmental entity may prohibit, delay or refuse to grant
regulatory approval or that regulatory approval is obtained subject
to conditions that are not anticipated, risk related to the
integration of Remitly and Rewire, risk related to the potential
impact on Rewire’s business and business relationships as a result
of the transaction and risk related to the ability of Remitly and
Rewire to retain and motivate key employees. It is not possible for
our management to predict all risks, nor can we assess the impact
of all factors on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. In light of these risks, uncertainties, and
assumptions, our actual results could differ materially and
adversely from those anticipated or implied in the forward-looking
statements. Further information on risks that could cause actual
results to differ materially from the forward-looking statements
are included in our quarterly report on Form 10-Q for the quarter
ended June 30, 2022 to be filed with the SEC, and within our annual
report on Form 10-K for the year ended December 31, 2021 filed with
the SEC, which are or will be available on our website at
https://ir.remitly.com and on the SEC’s website at www.sec.gov.
Except as required by law, we assume no obligation to update these
forward-looking statements, or to update the reasons if actual
results differ materially from those anticipated in the
forward-looking statements.
About Remitly
Remitly is a leading digital financial services provider for
immigrants and their families in over 170 countries around the
world. Remitly helps immigrants send money home in a safe, reliable
and transparent manner. Its digitally-native, cross-border
remittance app eliminates the long wait times, complexities and
fees typical of traditional remittance processes. Building on its
strong foundation, Remitly is expanding its suite of products to
further its mission and transform financial services for immigrants
all around the world. Founded in 2011, Remitly is headquartered in
Seattle and has seven global offices, including London, Cork,
Singapore, Manila and Managua.
About Rewire
Rewire is a cross-border financial services platform that meets
the unique financial needs of migrant workers. The fintech company
was founded by entrepreneurs Guy Kashtan (CEO), Adi Ben Dayan (VP
R&D), Saar Yahalom (CTO), and Or Benoz. It provides innovative
and accessible financial services through one easy-to-use app
including money transfer, debit cards, local payment accounts
(IBAN), insurance products and the ability to make cross-border
bill payments. By providing fair access to financial services, in
the user’s native language, Rewire is helping to narrow global
financial gaps, reduce inequality and promote financial inclusion
for working migrants.
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Adam Cormier adamc@remitly.com
Remitly Global (NASDAQ:RELY)
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