In 2020, Finicity Corporation, a leading provider of open banking solutions, was acquired by Mastercard for US$825 million with an additional earnout potential of up to US$160 million. This acquisition marked one of the largest fintech deals of the year and enabled Finicity to further expand its innovative solutions globally under Mastercard’s umbrella. Majmudar & Partners played a key role in guiding Finicity through the complex legalities of the deal in India, ensuring a smooth and compliant transaction for Finicity’s Indian subsidiary, Finicity Technologies Private Limited.
Facilitating the Transaction
Majmudar & Partners provided legal guidance to ensure Finicity’s Indian operations complied with regulatory and legal frameworks during this large-scale transaction. Their key contributions included:
- Due Diligence: Conducted a comprehensive due diligence review of Finicity Technologies Private Limited, identifying legal risks related to compliance, taxation, and employee contracts.
- Regulatory Compliance: Ensured the transaction adhered to India’s Foreign Exchange Management Act (FEMA), Press Note 3/2020, tax regulations, and corporate laws to avoid any post-closing issues.
- Structuring: Structured the acquisition of Finicity’s Indian subsidiary within the global deal framework, ensuring seamless integration into Mastercard’s corporate structure.
- Contract Drafting and Negotiation: Drafted and negotiated critical agreements, including share purchase and employment contracts, while safeguarding Finicity’s and Mastercard’s interests in India.
Finicity’s sale to Mastercard marked a pivotal moment for the company, allowing it to scale its offerings and strengthen its global reach. Majmudar & Partners facilitated the transaction, ensuring that Finicity’s Indian operations were legally compliant and integrated seamlessly into Mastercard’s global structure.
With extensive experience in cross-border M&A transactions, Majmudar & Partners provides expert legal counsel to companies navigating complex transactions in India. Contact us today to learn how we can help your business achieve its strategic objectives with seamless legal support.