Digiliti Money rejects ‘lifeline’ takeover bid
Written by Anthony Strzalek
Urban FT, an SaaS-based digital banking platform, has confirmed that struggling US-based mobile FinTech provider Digiliti Money has rejected its takeover offer.
Earlier this month, Digiliti Money announced its intention to file an extension with the Securities and Exchange Commission (SEC) after failing to meet the deadline to submit its Q2 earnings.
Digiliti Money has initiated an internal investigation regarding ‘recently discovered information’ indicating that it may need to restate its previously reported financial results. The firm also stated that, as a result, it could potentially file for bankruptcy.
Digiliti Money rejected the ‘lifeline’ offer from Urban FT, who had valued the struggling firm at $10.5 million.
Kasey Kaplan, president of Urban FT, said: “The Digiliti business is fundamentally good one, with good staff, good technology and good clients. We will leave our offer on the table for acceptance by Digiliti until close of business on August 31.
“We ensured that our offer took into consideration all SEC and NASDAQ requirements for a transaction like this, and I hope the Digiliti Board concludes that our offer is the most fair, equitable and reasonable option for the various stakeholder groups, whom they - as directors - are meant to adequately and diligently represent as part of their fiduciary duty.
“Placing Digiliti into bankruptcy, if that’s what the board is considering would be a great loss to all of those stakeholders and would truly disrupt so many organisations that rely on Digiliti’s services every day.”