Deal profile | Gadens advises Remitter on the acquisition of US based Mercantile Adjustment Bureau and its successful pre-IPO US$12m capital raise

Gadens congratulates Remitter, a Melbourne based fintech platform that improves bill payment rates by communicating to consumers digitally, on its recent acquisition of US-based Mercantile Adjustment Bureau, a recognised leader in receivables management services. The transaction follows the successful pre-IPO US$12m capital raise led by Canaccord Genuity with Gadens’ support.

Remitter is a white-label communications platform that utilises Artificial Intelligence to optimise customer engagement and enhance the recovery of accounts receivable. Currently, many organisations face challenges in collecting bill payments on time from customers. Remitter discerns behavioural heuristics to automate each customer’s experience with branded messaging and payment options, in a positive manner that will elicit early-stage first-party payments or later-stage third-party recovery.

Gadens has worked closely with the board of Remitter since its establishment in 2017, including providing advice on the initial software acquisition. In addition, our team advised Remitter on its US$12 million capital raising led by Canaccord Genuity in October 2021 which in part funded the acquisition. This raise was also backed by Allium Capital and Casey Capital.

Alongside existing ‘blue chip’ customers, this acquisition of new capital will debut exciting opportunities to access a significant client base, facilitating rapid growth and expansion overseas.

Antoine Pace, Intellectual Property and Technology partner commented,

“Gadens is proud to be working with an entrepreneurial team like Remitter at such an exciting time for the company. We have a well-established and long association with the founders of Remitter, and are delighted to be working alongside Stephen Borg and the team on this and other successful ventures.”

Deal value: US$12m

Practice groups: Corporate; Intellectual Property and Technology.

Deal significance: The acquisition of Mercantile Adjustment Bureau provides an outstanding opportunity for Remitter to propel the company’s revenue to US$18.4m in 2022, according to company forecasts. This puts Remitter in a strong position for organic growth within the US market and paves the way for global acquisitions in future.

Key team members: The transaction was led by partners Antoine Pace (Intellectual Property and Technology) and Michael Kenny (Corporate), both of whom worked closely with the directors of Remitter in relation to the recent capital raising. Associate, Christopher Lau assisted with the capital raising, and Senior Associate, Raisa Blanco (Intellectual Property and Technology) advised on the initial IP acquisition arrangements associated with the establishment of the business.