The merger of Radikant Bank and Numarics has been approved by Basellandschaftliche Kantonalbank (BLKB) as well as by the management and shareholders of the fintech, according to a press release issued on Thursday.

This partnership aims to expand the revenue base and lay the groundwork for additional growth. Under the new structure, Radicant plans to enhance its offerings for private clients while also tapping into the SME market.

The merged entity will provide a fully integrated suite of services, including banking, financial investments, and administrative solutions. BLKB plans to expand its subsidiary's market presence with the goal of reaching breakeven by 2027/2028.

Valuation Adjustments

Last year, the cantonal bank made a valuation adjustment of 22 million Swiss francs for its digital banking subsidiary and an additional 9 million francs in the first half of 2024. Radicant, which specializes in wealth management, was launched last summer and reported customer assets totaling 80 million francs as of the end of June.

«The planned merger is another important step in implementing our diversification strategy,» said Thomas Schneider, Chairman of the BLKB Board.

10 Million Francs Seed Round in 2023

No financial details regarding the transaction have been disclosed, but the merger will broaden Radicant’s investor base. In addition to BLKB remaining as the majority shareholder, existing venture capital firms such as Founderful, FiveT, Seed X, Davidson Capital, and UBS will also invest in the new company. Anton Stadelmann will continue as CEO of Radicant, while Numarics co-founder and board member Kristian Kabashi will assume the role of Chief Operating Officer.

«This merger represents the next significant step toward a comprehensive financial offering,» said Stadelmann. «Both private and SME clients will benefit from a digital document management system and innovative digital solutions.»

Numarics, founded in 2020 by Kristian Kabashi and Dominique Rey, specializes in automating administrative processes for SMEs in the Swiss market, combining artificial intelligence (AI) with the expertise of certified accountants and trustees. In mid-2023, the startup secured 10 million francs in a seed round from the aforementioned investors.

The merger is subject to regulatory approval.