The WISR Ltd (ASX: WZR) share price is on watch this morning after an investment update from the Aussie fintech.
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Why is the Wisr share price on watch?
Wisr this morning said it has executed a term sheet to invest in European financial wellness fintech platform, Arbor. A convertible loan structure will give Wisr a minority shareholding in the European financial wellness platform.
Wisr said there is a pathway to potentially increase its shareholding to 45% over the next 36 months. Forecast acquisition finalisation is April 2021 following finalisation of due diligence and legal documentation.
The Wisr share price will be in focus this morning after this latest acquisition update from the company. Shares in the Aussie fintech have rocketed 127.8% higher in the last 12 months to 21 cents per share.
Wisr's upfront consideration is approximately $400,000 cash with follow-on investment subject to various milestones. Arbor was founded in 2017 and has accumulated almost 100,000 customers in the European market, according to the release.
The European fintech uses a digital wallet to offer savings, investment and lending fatures to its customer base. According to today's release, Arbor is growing its user base by circa 20% month on month.
Wisr CEO Anthony Nantes said, "This is a small but highly strategic first step in taking Wisr's business model global." The acquisition will see Wisr and Arbor share intellectual property to grow the business further.
Prior to the market open, Wizr had a market capitalisation of $224.8 million. The Wisr share price will be worth watching as investors react to this global expansion move.
What does Wisr do?
Wisr is an Australian non-bank lender or 'neo-lender' that focuses on consumer lending services. The company has operated under various names since being founded in 1966, including DirectMoney.
The Wisr share price has climbed 7.9% higher so far this year on the back of strong trading performances from the Aussie fintech.
