In a surprising turn of events, TabaPay has reportedly terminated its intended acquisition of bankrupt FinTech firm Synapse.
According to a spokesperson from TabaPay the company withdrew from the deal and issued a termination notice citing failure to meet closing conditions outlined in the purchase agreement.
While TabaPay’s decision to pull out of the acquisition appears final, Synapse Co-Founder and CEO Sankaet Pathak remains optimistic. Pathak expressed belief that TabaPay might still be interested in completing the acquisition and could potentially be persuaded to revisit the deal.
The acquisition was initially announced by TabaPay on April 19, with intentions to acquire Synapse’s assets. This move was positioned to enable TabaPay to expand its range of financial services for both FinTechs and financial institutions.
In a press release at the time, TabaPay highlighted the complementary nature of the two companies’ financial technology services, with both having been recognized on Deloitte’s 2023 Fast 500 list.
Synapse, a startup specializing in banking-as-a-service (BaaS), has faced challenges, including two rounds of layoffs in October 2023 and June 2023. Pathak attributed these actions to the impact of macroeconomic conditions on clients and platforms, despite the company achieving profitability.
Pathak previously expressed optimism about the acquisition, emphasizing the benefits it would bring to Synapse’s customers, placing them within a larger ecosystem of bank partners, network connections, and existing clients.
This development follows an earlier announcement by TabaPay regarding an expanded partnership with Pathward in October 2023. The collaboration aimed to enhance Pathward’s suite of faster payments solutions, catering to evolving consumer expectations.
Despite the setback with Synapse, TabaPay remains committed to advancing financial technology solutions. The termination of the acquisition deal underscores the unpredictable nature of the FinTech landscape, leaving the future of both TabaPay and Synapse uncertain.
