Investment bank JP Morgan has agreed to acquire cloud-native payments technology company Renovite Technologies, as part of the modernisation of its payments infrastructure.
Following completion of the strategic acquisition, Renovite will become part of JP Morgan Payments, which combines corporate treasury services, trade finance, card and merchant services capabilities to deliver an “integrated payments experience” to the firm’s clients.
California-based Renovite, which also has a presence in the UK and India, has built six proprietary, cloud-agnostic and payment token-agnostic payments products which helps their clients to implement infrastructure such as switch, reconciliation, security, issuing, ATM and testing.
Renovite has supplied services to JP Morgan since 2021.
Max Neukirchen, global head of payments and commerce solutions at JP Morgan, said the deal will “accelerate our roadmap for helping our clients stay at the cutting-edge of payments innovation”.
“This acquisition will help us achieve our goal to develop the next-generation payments processing platform globally,” he added.
Viren Rana, CEO and founder of Renovite said: “We believe that the contemplated transaction will help us to realise our joint vision to deliver world-class payments capabilities globally through next-generation infrastructure for JP Morgan Payments clients.”
The transaction, the terms of which are undisclosed, is subject to customary closing conditions.
JP Morgan said the deal will complement its strategic investment in European cloud-based payments fintech Viva Wallet, announced in January this year. It is set to acquire an ownership stake of approximately 49%.
A year ago, JP Morgan entered into a deal with Volkswagen Financial Services to purchase a controlling interest of close to 75% in the car manufacturer’s payments platform, operated by Volkswagen Payments.