Purchases and mergers in the world of global finance always arouse the analysts’ interests. When it comes to PNC Financial Services, one of the ten largest financial holdings in the US, the interest is double. Two years ago, the giant acquired ADD 4 I.T. LIMITED (New Zealand), a modest regional company engaged in the artificial intelligence sphere, which sold fintech solutions for business and was not mentioned anywhere, except for specialized forums, in 2017. Even today, two years later, little is known about the deal.
Considering that the race in the fintech sphere is becoming more and more exhilarating, the acquisition is clearly beneficial for both parties. PNC will be able to get a head start in the race, increase profits and cut costs. And the New Zealand team will be able to move up to an entirely new level of development with the colossal payout , which is a record for the region. The team, headed by Aaron Diggelmann and CTO Chris Scott has not relocated to the USA, as is often the case with intercontinental mergers, although the staff has increased almost 4-fold in the two years since the deal.
The targeted allocation of the new division’s financing in PNC’s budget is another point that makes it clear: ADD 4 I.T. is at the forefront of the holding’s interests. The amount was not disclosed, but until 2019 the board of directors did not deal with issues of peripheral technical support structures. Apparently, PNC is preparing to enter the global race in the field of artificial intelligence and possibly blockchain technologies.
The importance of this transaction for PNC Financial Services Group, Inc. can be assessed by the volume of financing alone – the public part of the purchase of the controlling stake. We could not obtain any specific information directly from the participants, or from the PNC press center after contacting it for comments on the merger.