News

Urban FT rides to the rescue of troubled banking app developer Digiliti

August 17, 2017

Urban FT Inc., a SaaS-based digital banking platform, has made a bid to rescue troubled Digiliti Money Group Inc. (previously, Cachet Financial Services), a mobile app technology firm.

On Tuesday, the board of Urban FT contacted the Digiliti Money chairman with a bona fide, all-cash purchase offer that would enable the company to continue to serve its customers and stave off potential bankruptcy proceedings, according to a press release.

"Our goal in approaching Digiliti Money with an attractive and timely offer is to keep the business operating and viable as we consolidate the entities to leverage the savings from operational synergies," Urban FT COO Glen Fossella said in the release. "We believe that our cash offer … represents the best benefit to all parties involved, most particularly the consumers who rely on the services of Digiliti Money's clients. … Digiliti Money is within our acquisition parameters, and, ultimately, we believe will deliver an earnings-accretive outcome to all relevant stakeholders."

According to Fossella, the acquisition is reasonably straightforward, with only the usual caveats of conducting satisfactory due diligence related to the operational, financial and legal affairs of Digiliti Money; Digiliti Money undergoing a satisfactory audit; and required legal, shareholder, regulatory and other third-party approvals.

"We're prepared to move quickly, and we hope Digiliti Money will match our speed and commitment to completing this transaction," Fossella said.

In recent weeks, the trade press has reported on financial difficulties at Digiliti. On Aug. 14, the company issued an update on its corporate activities, indicating that it is "actively reviewing strategic options to restructure the company," including a potential sale or Chapter 11 bankruptcy filing.