Italian banking group UniCredit has entered a binding agreement to acquire the entire share capital of core banking software platform Vodeno and Belgian challenger Aion Bank for a combined €370 million ($401.7 million/£310.9 million).
Founded in 2018 and headquartered in Warsaw, Poland, Vodeno is a Banking-as-a-Service (BaaS) player that combines its proprietary blockchain-based, cloud-native platform with banking services based on its partner Aion’s ECB licence to enable fully end-to-end BaaS for both financial and non-financial companies across Europe.
Together, Aion Bank and Vodeno help embed financial solutions including accounts, deposits, lending and payment propositions, directly into the customer journeys of retailers, e-commerce marketplaces, fintechs, financial technology providers and banks.
UniCredit stated that the deal – one of the first moves by a bank to acquire full ownership of a new technology – will enable it to own a cloud-based, scalable core banking technology, enhance in-house technological expertise, obtain a separate innovation and testing hub to develop new solutions and functionalities, pursue new targeted client segments for a “more viable and profitable” entrance into European markets, improve its embedded finance offering and enhance its value proposition for individuals and SMEs.
As part of the transaction, UniCredit will take in 200 engineers, developers and data scientists from the acquired firms post closing of the deal, which is expected in Q4 2024, subject to regulatory approvals.
“This investment enables us to leverage Vodeno’s technology and talent to further develop their proprietary technology using it as a sandbox to develop, test and innovate for the benefit of our broader group,” said Andrea Orcel, CEO of UniCredit.
“The combination of Aion Bank with the integrated technology provides the route to enter targeted client segments and entire markets across Europe, providing additional opportunities to attractively deploy our excess capital.”
