PROG acquires Four Technologies, BNY Mellon acquires Milestone Group, and Zoom acquires Five9.
PROG Holdings acquires BNPL company Four Technologies
On July 13th, PROG Holdings announced the acquisition of Four Technologies. PROG, best known for owning Progressive Leasing, a lease-to-own solutions provider, aims to further advance its Buy Now, Pay Later (BNPL) portfolio.
PROG provides non-immediate payment options for consumers with substandard credit. Progressive Leasing allows previously overlooked consumers to acquire large-ticket items through a lease-to-own plan generator, serving consumers that traditional leasing services would not. CEO Steve Michaels, a CPA who worked over 35 years at The Aarons Company, has demonstrated strong ability to grow the payments company.
Four Technologies, founded in 2018, offers proprietary software that lets consumers pay for merchandise through four interest-free installments. CEO Chaim Lever, based in the Fort Lauderdale and Miami areas, has over five years of fintech experience. PROG plans to use Four as a catalyst for further BNPL expansion. The BNPL industry has experienced rapid growth, deriving much of its value from increased average transaction size and reduced "sticker shock"; according to PayBright, some businesses observed an increase in average order value of over 30% when offering a BNPL option. A singular BNPL platform spanning many retailers could create a more unified, efficient consumer experience.
BNY Mellon to acquire Milestone Group
On July 12th, BNY Mellon announced an agreement to acquire fund management tech firm Milestone Group, an investment automation company, to expand its digital platform. With $2.2 trillion in assets under management, BNY Mellon is the world's largest custodian bank and asset servicing company. The two firms had an existing partnership creating net asset value (NAV) services for asset managers. With this acquisition, BNY Mellon will provide OCIO services, cash allocation, and fair value control solutions. "We gain both industry-leading technology as well as the expertise that Milestone is known for globally," said Roman Regelman, CEO of Asset Servicing and Head of Digital. Terms were not disclosed.
Zoom to acquire Five9 for $15 billion
On July 19, 2021, Zoom Video Communications announced it agreed to acquire Five9, Inc., expected to close in the first half of 2022. Zoom, a SaaS company specializing in cloud-based meetings, saw its rise greatly accelerated by the pandemic and is led by CEO Eric Yuan. Five9 is a contact center as a service, helping manage customer interactions across voice, SMS, chat, email, and social, incorporating AI, and led by CEO Rowan Trollope. The stock-based deal gives Five9 shareholders 0.5533 shares of Zoom common stock, an implied price of $14.7 billion. The acquisition bolsters Zoom's presence with customers by entering the $24 billion contact center market, helping Zoom navigate the shift to hybrid work.
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