TabaPay will acquire the assets of Synapse Financial Technologies following the decision of the firm to file for Chapter 11 bankruptcy. The courts must first approve the agreement. The specific terms were not revealed.
TabaPay is a payments and transfers Fintech that reportedly provides services to 2500 firms in North America, including 15 banking partners.
Synapse was a high-flying Fintech company that both CNBC and Statista had previously recognized as one of the world’s best. Synapse sought to provide access to financial services for people “who have been left behind by traditional banking institutions.”
TabaPay expects to announce additional solutions that leverage the Synapse assets once the acquisition is approved.
In a release, TabaPay co-founder and CEO Rodney Robinson said the assets are a great and natural fit for their existing services, allowing them to “grow our offerings in tandem with providing continuity to Synapse clients and banks.”
The failure of Synapse played out over time. Last October, Synapse laid off many employees, and it was reported that it needed to find a new banking partner to survive. In April 2020, a critical article ran in Forbes that highlighted departing executives.
In recent days, Synapse founder and CEO Sankaet Pathak, took to X to clarify certain issues calling out one Fintech investor as spreading misinformation. He stated their goal is to be acquired by Tabapay, [and Chapter 11] is the vehicle they are using to consummate the transaction.
Synapse had raised over $50 million prior to announcing bankruptcy.
