Monzo Seeks Private Equity Stake After Nubank Merger Fails
Monzo Bank is negotiating the sale of a 15% stake to private equity firms after merger talks with Brazilian fintech Nubank collapsed over valuation disagreements.
Digital bank Monzo is pursuing discussions with private equity investors to sell a stake of up to 15% in the company. This shift in strategy follows the collapse of merger negotiations with Brazilian fintech firm Nubank, which officially announced on Wednesday that it would not pursue the deal.
The takeover talks ended because the two parties could not agree on a valuation for Monzo, which had been estimated at up to £10 billion. Following the failure of the merger, Monzo has held early-stage talks with European buyout group CVC and US private equity firm Advent International.
Advisers for the bank intend to engage with additional fund managers, as a sale to a private equity fund has become the preferred option for the company.
