U.S.-based GlobalTrade Corporation (GTC) announced it has been acquired by Swiss-headquartered Komgo.
Terms of the deal, which sets the stage for a merger of two of the biggest names in trade finance software, were not disclosed.
The two companies provide trade finance digitization solutions to over 120 multinational clients, helping them connect to sources of financing, according to a Thursday (Dec. 1) press release.
“The industry has been waiting for this consolidation,” GTC Chairman of the Board Jacob Katsman said in the announcement.
“Together with Komgo, we can now connect corporates to all their financial institutions for trade finance irrespective of what back-office system they use. Solutions offered by both companies are complementary and cover the complete range of payment instruments used in international trade,” he added.
With the tie-up, “Komgo and GTC will provide the widest coverage, and biggest volumes, for our corporate and bank users,” Komgo CEO Souleïma Baddi said in the release. “We are combining Komgo’s commodity expertise with GTC’s industry expertise, consolidating the market for digital trade services. Trade finance is moving to a digital framework, and we’re proud to be at the forefront of this transition.”
Even before the latest acquisition, Kongo had already onboarded some of the largest banks in Europe and the U.S., including ABN Amro, Citi, and ING. In a major foray into the Latin American market, last month Banco Latinoamericano de Comercio Exterior (Bladex) joined the platform too.
As trade finance becomes increasingly digitized, companies like GTC and Komgo are helping businesses access, oversee and manage financing from different banks and other institutional credit providers via a single unified platform.
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