GoLogiq, Inc., a U.S.-based global provider of fintech and consumer data analytics, has signed a definitive share exchange agreement with Nest Egg Investments, a privately-held company providing a simplified retirement investing app. The all-stock transaction is valued at $30 million.
Nest Egg brings to GoLogiq a streamlined mobile solution for discovering, planning, and automating retirement savings. This will include investment products and services offered by Nest Egg’s subsidiary and FINRA licensed broker dealer, BeyondTrade Securities, which is awaiting its name change to Nest Egg Securities.
Under the terms of the agreement announced earlier this month, Nest Egg has merged with GoLogiq as a wholly owned subsidiary. GoLogiq is issuing Nest Egg shareholders shares of GoLogiq common stock valued at $30 million in exchange for 100% of Nest Egg and its subsidiaries. The transaction is anticipated to be completed within the next few weeks, subject to customary closing terms.
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The financial wealth of Millennials and Gen Zs reportedly jumped 25% last year (higher than for Gen Xs and Baby Boomers), and their aggregate assets grew from $2.9 trillion to $3.6 trillion. Given this trend, Bain & Company has projected the wealth management market to double in size and exceed $500 billion by 2030.
However, according to a recent survey, the median age of workers who begin saving for retirement has risen to 27, with 33% currently without any retirement savings plan.
Nest Egg addresses this need and large market opportunity with engaging investor education combined with simplified automated savings and investment tools—all conveniently provided on a secure Android or Apple mobile app. It delivers personalized investment strategies along with a simplified user experience for selecting or building portfolios and automating trade executions.
Nest Egg is backed by Tier 1 partnerships that support its banking and payment services. Nest Egg has established clearing and custody arrangement with Velox Clearing, and has engaged Plaid, a financial services data network that powers fintech tools used by millions of users. These solutions will help Nest Egg users contribute to their IRAs through everyday spending.
The Nest Egg app is presently in beta release and is anticipated to officially launch in the next few months. To support the launch, Nest Egg plans to leverage its affiliation with four other mobile apps that have about 190,000+ active accounts and growing.
The proposed transaction builds upon GoLogiq’s recently announced $320 million definitive merger agreement with GammaRey, a fintech ecosystem for the new digital economy that features a commodity-backed digital currency, digital wallet, and proprietary transaction platform for securities, goods, and services; and $800 million in customer financial assets.
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The addition of Nest Egg, which had previously been an acquisition target of GammaRey, will enable GoLogiq to further leverage GammaRey’s fintech ecosystem with offerings that address the high-growth market of wealth management for Generation Z and Millennials.
“We believe our simplified investment app has the potential to help millions of millennials save and invest every day,” stated Trent McKendrick, CEO of Nest Egg who has now joined GoLogiq. “As part of GoLogiq, we expect to benefit from the long-anticipated synergies we had envisioned through partnering with GammaRey.”
GoLogiq interim CEO, Brent Suen, commented: “We welcome Trent and his highly capable and accomplished executive team. As they continue to advance the Nest Egg platform, they will help us realize our vision for a comprehensive fintech platform that supports underserved businesses and consumers across the U.S. and around the world.”
GoLogiq’s existing mobile finance offering is built upon the proven Tech Mahindra/Comviva mobiquity® Pay platform that currently serves more than 130 million customers in more than 45 countries. GoLogiq’s microlending app is powered by the Tech Mahindra/YABX platform that allows it to offer micro and small consumer loans, agent loans, handset loans and airtime credits to customers in emerging markets.
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GoLogiq’s ‘hyper-local’ delivery platform was built in-house over two years. Test markets in Jakarta, Indonesia had more than 150,000 customers generating 15,000 deliveries per day. In February 2020, a pilot program was also run with SEA, Ltd involving shared deliveries in the central business district of Jakarta.
GoLogiq anticipates the straightforward integration of its eWallet and a microlending platform with Nest Egg’s customer base will create a strong cash flowing business. Given recent GoLogiq initiatives in SE Asia, it anticipates adding incremental gross profit margins upwards of 30% once fully deployed. The hyper-local delivery platform will be combined with another project that will involve a new target demographic in populous urban areas.
Suen added: “Our strong roots in mobile app development, e-commerce, and bill payment make Nest Egg a great fit, and especially with the addition of GammaRey. We see huge opportunities as we look to integrate the powerful complementary fintech solutions of GoLogiq, Nest Egg, and GammaRey. We anticipate the completion of these transactions will set the stage for strong growth and profitability in the new year.”
While the company believes that the Nest Egg transaction will be completed as agreed, it is dependent on certain closing terms. So, no assurances can be made that the transaction will be completed as described.
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