Financial technology giant FIS says it plans to become a leader in supply chain finance following the acquisition of London-headquartered Demica. 

New York-listed FIS, which provides banking and payments technology and processes transactions worth trillions of dollars per year, announced the acquisition on February 13. The deal is fully closed with all regulatory approvals granted, GTR understands. 

Demica, which was founded in 1992, provides a multi-funder platform for payables and receivables finance, with a focus on corporates with large, complex receivables portfolios. 

It also offers dynamic discounting for buyer-led programmes and securitisation for receivables, and provides a white-labelled product that can connect to financial institutions’ back-office systems. 

“Demica solutions are complementary to FIS’ current lending portfolio by enabling the company to better serve the supply chain financing needs of corporates and large banks,” an FIS spokesperson tells GTR. 

“The acquisition strengthens FIS’ position as a lending leader, enabling the company to expand into the supply chain financing space, offer the broadest set of lending capabilities, enabling us to better serve the supply chain financing needs of trade banks and corporations. 

“This also demonstrates the FIS commitment to investing in innovative digital technologies and its focus on advancing lending across the globe.” 

FIS chief executive and president Stephanie Ferris told investors on an earnings call this week that the move “position[s] FIS as a leader in supply chain finance capabilities”. 

The company has not confirmed the value of the deal, but Sky News – which first reported that a deal was imminent in December – said sources indicate it is around US$300mn. 

Demica chief executive Matt Wreford says the acquisition reflects the company’s “stellar reputation in supply chain finance, becoming a trusted partner for banks and corporates worldwide”. 

“This marks a significant milestone in our journey, reflecting both the strength of our business and the hard work of our exceptional team,” Wreford says. 

“Joining forces with FIS opens up new opportunities to accelerate our growth, enhance our offerings, and continue delivering world-class solutions to our clients.” 

Demica said in November that the total value of receivables across all programmes had surpassed US$40bn, representing invoice flows totalling more than US$240bn. 

The company said compound annual growth of assets on its platform was more than 40%, putting it on target to reach US$100bn in assets under administration by 2030. 

Lenders active on its platform include the African Export-Import Bank, BBVA, Commercial Bank of Dubai, Crédit Agricole, HSBC, ING and Standard Chartered, the November announcement said.  

Clients using Demica for receivables finance and securitisation include Accel, HeadFirst Group, Impellam and Jardine Norton. 

The deal marks another acquisition of a supply chain finance company by a major technology company, after SAP took a majority stake in Taulia in January 2022.