Japanese financial giant SBI is reportedly set to acquire a 70% majority stake in banking-as-a-service platform Solaris for €100m (£83.4m).
According to Bloomberg, the deal comes at a pivotal time for Solaris, a company grappling with significant challenges in recent months.
At the core of Solaris’ challenges are a regulatory dispute with Germany’s financial watchdog, BaFin, asset write-downs from a recent acquisition and the costs involved in integrating a credit card portfolio from the German motorist club ADAC.
The Berlin-based firm has taken steps to streamline its operations, including selling its UK-based Engage business to Suits Me. Additionally, Solaris made the decision to reduce its workforce by a third, affecting around 700 employees.
In addition to these measures, Solaris has sought out additional funding to stabilise its operations. The company has secured further investment from Boerse Stuttgart Group and its existing backers, bringing the total capital raised to around €150m (£125.1m).
The agreements with Boerse Stuttgart Group and SBI are reportedly part of a strategic plan aimed at providing Solaris with the financial stability it needs to reach profitability within the next two years.
A Solaris spokesperson was quoted, as saying: “A group of investors and partners have developed a coordinated financing concept that has been submitted to our shareholders for approval.”
