Kakao Pay, a fintech division of Korean conglomerate Kakao Corp., announced an agreement to pay roughly $17 million for a 19.9% stake in American brokerage Siebert Financial Corp.
According to a joint statement from the two parties, Kakao Pay will purchase an additional 31.1 percent of Siebert shares subject to shareholder and regulatory approval.
Kakao Pay will own a total of 51 percent of Siebert after the second transaction is completed, making it the company with the largest stake in Siebert.
The Gebbia family will keep a sizeable ownership stake in Siebert, and the current management group, under the direction of the Gebbia family, will continue to oversee business operations and branch locations.
The senior management teams at Siebert and Kakao Pay have a shared vision, according to the statement, which supports the strategic direction of each company.
Siebert’s growth plans will be accelerated by the partnership and capital infusion, which will also expand its distribution network and platform.
In order to strengthen the company’s business and growth strategy, Kakao Pay will draw on its technological expertise in the financial services industry and collaborate with Siebert. This will improve user experience and provide more advantages for users who invest in foreign stocks.
“We are excited to announce this transaction with Kakao Pay which will enhance our capabilities and accelerate our growth plans,” said Gloria E. Gebbia, controlling shareholder and Board Member of Siebert.
“The partnership with Kakao Pay will provide us with significant financial resources to opportunistically invest in our key business lines while leveraging the expertise and technological capabilities of one of the leading financial services innovators in the Korean market to expand our reach and enhance our technology offerings,
“We look forward to working with Kakao Pay as we chart the next phase of our evolution to empower our clients’ success,” he added.
The Chief Executive Officer of Kakao Pay, Won-Keun Shin, claimed that by making a strategic investment in Siebert, a business with more than 55 years of history and experience, Kakao Pay has attained a great opportunity to expand its financial business abroad.
“We will continue to enhance our user experience and benefits as a financial platform and seek new chances for innovation in the global market,” he added.
Providing a variety of financial services, Siebert has been listed on the NYSE since 1967.
Muriel Siebert & Co., Inc., Siebert AdvisorNXT, Inc., Park Wilshire Companies, Inc., RISE Financial Services, LLC, Siebert Technologies, LLC, and StockCross Digital Solutions, Ltd. are the company’s subsidiaries through which it conducts business.
Siebert offers a comprehensive range of brokerage and financial advisory services through these companies, including securities brokerage, investment advisory and insurance offerings, securities lending, and corporate stock plan administration solutions.
Kakao Pay, a TechFin division of Kakao Corporation, was separated in April 2017.
With about 40 million users who have registered, the company provides a wide range of financial services.
