Banco Santander, Spanish banking giant has acquired 50.1% stake in Mercury Trade Finance Solutions (Mercury TFS), an end-to-end trade finance transactions solutions provider, for €30m.
As per Banco Santander, the acquisition in Mercury TFS, is part of its digital strategy to grow by buying corporate stakes and is expected to strengthen its international trade platform.
The deal is also expected to strengthen the bank’s position in offering its services to small and medium enterprises and corporates with international operations.
The trade finance digitalisation software developed by Mercury TFS will support the Spanish bank’s customers in managing their entire trade finance activity online or via mobile phone.
Mercury TFS will also enable Santander to digitalise its internal process management
Mercury TFS will also enable Santander to digitalise its internal process management, enabling enhanced control and operational efficiency. The fintech company has a workforce of 130, spread across Spain, Mexico, Chile and Colombia.
For several years now, Santander has been using Mercury TFS’s services in Spain, Mexico, Chile and Germany. The bank’s UK and Portugal businesses will also start using the services at year-end through its trade platform Global Trade Services (GTS).
One-third of the amount invested by Santander will be used to subscribe for new shares, which will allow the company to gain new funds to offer new services and expand customer base.
Mercury TFS’ CEO and head of technology will continue to lead the company.
Santander Global Payments Services head Javier San Félix said: “The investment accelerates our plans to build a service platform for SMEs and international companies to better serve our customers worldwide.
“We are also helping to globalise Mercury TFS, a software company with huge potential and a team with enormous talent, by reinforcing their technical and commercial teams and complementing their already broad product range.”
In November Santander also purchased a 50.1% stake in Ebury, which holds an international trade and forex platform for SMEs.
By combining its strengths and assets with those of Ebury and Mercury TFS, Santander aims to gain a major position in international trade for SMEs in Europe and America.
