South Korean fintech Kakao Pay has acquired a 19.9% stake in US-based financial services firm Siebert Financial Corp for approximately $17 million, with plans to purchase an additional 31.1% stake in a second transaction. Once the second transaction is completed, Kakao Pay will become a majority shareholder with 51% ownership.
Facts
- Kakao Pay has acquired a 19.9% stake in Siebert Financial Corp for around $17 million.
- Kakao Pay plans to buy an additional 31.1% of newly issued Siebert shares in a second transaction, subject to shareholder and regulatory approvals.
- Kakao Pay will become a majority shareholder of Siebert with 51% ownership.
- The Gebbia family, current majority shareholders of Siebert, will continue to hold a significant ownership in the firm.
- Siebert’s current management team, led by the Gebbia family, will continue to operate as usual.
- Siebert provides a range of brokerage and financial advisory services, while Kakao Pay offers financial services including online and offline payment, money transfer, bill payment, payment authentication, investment service, credit ratings, loans, and insurance.
- Both firms plan on leveraging each other’s capabilities to accelerate their growth, with Siebert planning to broaden its platform and distribution and Kakao Pay aiming to enhance its user experience and offer additional benefits for users who invest in foreign stocks.
