Payments firm Bango which powers Netflix and Britbox revealed it had snapped up Japanese firm Docomo Digital today in a deal worth €4m (£3.4m).
Bango, which provides a payments platform for ecommerce firms, is looking to bolster its presence in Japan and has separately inked a deal with Docomo’s parent company to provide payments services in Japan for firms including Telefónica and Deutsche Telecom.
The deals marks a major expansion in the region for Cambridge-based Bango and will see it add a host of new customers to its Japanese customer base including Tidal, Discovery and Paramount+, as well as extending partnerships with firms including Vodafone and investment giant Softbank.
Business secretary Kwasi Kwarteng hailed the deal as a signal of the UK’s fintech strength and said ministers were looking to fuel the global growth of firms like Bango.
“This acquisition only further builds on the UK’s reputation as a global centre for fintech, and we will continue to create an environment where innovative businesses can expand at scale, boosting jobs and our economy,” he said in a statement.
Bosses at Bango said the deal was now set to deliver a $5m (£4.27m) boost to revenues and will bring an additional $3.5bn in user spend on its platform.
“Acquiring Docomo Digital strengthens our position as a world leader in data-driven commerce,” Bango boss Paul Larbey said.
The announcement of the deal sent shares in Bango soaring beyond 17 per cent today. Analysts at investment bank Liberum said the deal “accelerates Bango’s growth strategy” as they hiked their target price for the stock from 260p to 345p.
“The acquisition is highly consistent with its strategy and enhances Bango’s virtuous circle,” the analysts said.
“Together, the acquisition and platform deal, are forecast to contribute $16m of revenues in FY23.”