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Australian BNPL Splitit delists from the stock market as investor Motive Partners takes control

The deal announced in August has now closed following shareholder approval

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Splitit

Private equity investor Motive Partners has completed its plan to acquire Australian buy now, pay later provider Splitit in a move that sees that fintech delist from the Australian Stock Exchange.

The $50m deal was first announced in August and has now been approved by Splitit shareholders, with funds being paid in two halves, with a second $25m tranche payable if Splitit achieves certain 2023 full-year milestones (which Motive says the company is already exceeding)

In a statement, Splitit said the funds will be used to accelerate its growth and execute its strategic plan, as well as redomicile the company in the Cayman Islands — a move which will reduce its administrative costs.

“Motive’s investment significantly strengthens our balance sheet and brings additional global payments expertise, allowing the team to accelerate our white-label product strategy, product innovation, and our Tier One global distribution partnerships,” Nandan Sheth, managing director and CEO of Splitit said.

Australia’s overcrowded buy now, pay later sector suffered heavily during the fintech downturn over the last 18 months.

While the Australian market once boasted more than a dozen pay later players, now just half of those are still operating, after FuPay, IOUpay and INKPAY all closed, Affirm withdrew from the market and Humm was blocked by the regulator from accepting new customers, to name but a few examples.

Splitit’s share price fell over 95 per cent from its peak of A$1.83 in August 2020 to just A$0.08 when Motive Partners announced its takeover in August 2023.

“We have been impressed by Splitit’s evolution into the premier card-attached installments platform and are excited for the opportunity to apply our expertise and resources to further enhance Splitit’s global growth trajectory,” Blythe Masters, founding partner of Motive Partners said.

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