Husky Acquisition: Key Details, Impact, and What Comes Next

Nomad's acquisition of Husky marks a significant milestone in the fintech industry. This strategic move enhances Nomad's service offerings for Brazilians working abroad, solidifying its position in the market. The acquisition underscores the growing importance of financial technology solutions tailored to international professionals, reflecting Nomad's commitment to expanding its global financial services.

What Is Husky?

Founded in 2016, Husky specializes in international money transfers with minimal bureaucracy. Its core services include receiving payments in multiple currencies, currency conversion, and maintaining funds in a Nomad account. Husky stands out in the market with its low fees, transparency, and flexibility, allowing users to keep funds in dollars or convert to Brazilian reais as needed. The platform is regulated by the Central Bank of Brazil, ensuring compliance with financial regulations and providing a secure user experience.

Who Acquired Husky?

Nomad is a fintech company that provides digital financial services, primarily targeting Brazilian customers who need access to financial services in the United States. Key products include an international account in USD, a globally accepted debit card, and various investment options such as ETFs, stocks, and bonds. Nomad also offers competitive currency exchange and international payment services. Recognized as a prominent fintech startup, Nomad has been featured in several prestigious lists and awards, underscoring its influence in the industry.

When Was Husky Acquired?

Nomad acquired Husky on November 4, 2022. This acquisition came six months after Nomad raised $32 million in a funding round, reflecting a strategic move to expand its financial services for Brazilians working abroad. The timing aligns with the post-pandemic increase in international travel and remittances, positioning Nomad to capitalize on the growing demand for seamless international financial transactions.

Why Was Husky Acquired?

• Market Expansion: The acquisition of Husky by Nomad is a strategic move to expand Nomad's market reach. By integrating Husky's international transfer capabilities, Nomad aims to serve a broader audience, particularly Brazilians working abroad. This expansion is expected to double Nomad's monthly volume of international transfers and bring in new customers.
• Technology Integration: Husky's online platform, which has already moved over $2.7 billion BRL, will be integrated into Nomad's services. This merger will create a unified international services environment, enhancing Nomad's technological capabilities and operational efficiency.
• Competitive Advantage: By acquiring Husky, Nomad strengthens its position against competitors like Avenue Securities. The acquisition allows Nomad to offer a more complete suite of financial services to Brazilians, particularly those conducting business in the U.S. This move is expected to attract more customers and increase Nomad's market share.

Acquisition Terms

• Acquisition Price: The transaction amount was not disclosed.
• Payment Method: The purchase price consisted of cash and Nomad shares issued to Husky’s shareholders.
• Key Conditions or Agreements: The acquisition included the integration of Husky's platform with Nomad's services, aiming to create a unified international services environment. The deal also required regulatory approvals and involved legal counsel from TozziniFreire Advogados in Brazil and Foley & Lardner LLP in the U.S.

Impact on Husky

The acquisition of Husky by Nomad has led to notable changes in operations and management. Husky is now fully owned by Nomad, which implies a shift in the ownership structure and potentially in the management team. The integration of Husky's platform with Nomad's services aims to create a unified international services environment, enhancing operational efficiency and technological capabilities. This merger is expected to double Nomad's monthly volume of international transfers, reflecting a significant operational change aimed at expanding Nomad's market reach.

In terms of product offerings, the acquisition allows Nomad to offer more comprehensive financial solutions, particularly for Brazilians who need to transfer funds between the U.S. and Brazil. Husky's platform, which facilitates international money transfers, will be accelerated using Nomad's resources, providing a more efficient service for customers. Employee reactions have been positive, with Husky's founder expressing motivation and confidence in the future. While specific customer reactions are not detailed, the enhanced service offerings are expected to benefit users by providing a more seamless and efficient financial experience.

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