Chinese fintech firm Pintec Technology has agreed to buy Shenzhen Jishengtai Technology (JST) for an unknown sum.
JST is a securities technology firm based in Shenzhen, China. It designs and implements an end-to-end Broker Supplied System (BSS) for automatic order matching and execution of securities trading.
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The deal follows Pintec’s recent purchase of Hong Kong securities brokerage firm Riche Bright Securities.
Pintec said that the merged digital platform and system of JST and RB will poise RB as a boutique brokerage.
It will leverage JST’s online securities system of different securities such as stock, stock options, debt instruments, and trusts for trading, clearing, settlement, data information, to offer trading system services.
These services are aimed at corporate clients across various industry segments, institutional investors, and HNW individuals.
Pintec CFO Steven Sim said: “These acquisition of JST and RB will accelerate Pintec’s plan in transforming our business by broadening our wealth management services to include fully digitised securities brokerage, which is more critical than ever in today’s environment as we see increasing appetite from corporate clients and investors for full service online securities platform.”
As part of the deal, Pintec will issue certain non-voting ordinary shares to JST’s original shareholders as the consideration for the sale.
It comprises a fixed base of 38,098,200 shares and an additional maximum of 45,098,200 shares.
Sim added: “From a financial perspective, we expect the acquisition of JST and RB to be neutral to accretive to Pintec’s non-GAAP earnings per share in the first full fiscal year after the transaction closes.”
The transaction is subject to regulatory approvals and customary closing conditions. The company said there can be no assurance that the transaction will be finalised in a timely manner.
Last August, Pintec named Victor Huike Li as its new CEO and director.
In 2019, the firm partnered with Industrial and Commercial Bank of China to improve the efficiency of lending services for small and micro-sized enterprises (SMEs).
