Canada-based fintech firm Mogo has brokered a deal to buy Canadian broker Fortification Capital to accelerate the development of its planned commission-free stock trading platform.
The deal consideration consists of a cash payment of C$500,000 and 75,000 Mogo shares.
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Mogo is looking to build a digital wealth platform in Canada as the demand for digital wealth services rises.
The firm recently acquired local saving and investing app Moka Financial Technologies, expanding its offerings to include saving and investing offerings.
Mogo said the latest deal would provide it with order execution only (OEO) registration capabilities. OEO is a necessary regulatory requirement for the firm to provide stock trading to its members.
The addition of Fortification will also bring in necessary licenses, registration, and technology needed for the firm to speed up the development of its stock trading solution.
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By GlobalDataThese include an order management system and market data processing capability, among other things.
Mogo founder and CEO David Feller said: “The proposed acquisition would provide us with a registered investment dealer platform, as well as regulatory and technology capabilities – key building blocks for our trading offering.
“We are moving forward aggressively with the development of MogoTrade which is expected to launch in 2021.”
Mogo president Greg Feller noted that the acquisition is consistent with the firm’s plans to vertically integrate around its core offerings.
Fortification is expected to operate as a stand-alone wholly-owned subsidiary of Mogo following the closing of the transaction, which is subject to regulatory approvals.
