<div>
  <p>
  </p>
  <ul>
    <li>
      <p>
        TabaPay, an instant money transfer platform, has announced that it has acquired the assets and affiliates of Synapse, a banking-as-a-service (BaaS) infrastructure provider, for an undisclosed sum, following the filing of a voluntary bankruptcy petition under Chapter 11 by Synapse.
      </p>
    </li>
    <li>
      <p>
        Through this acquisition, TabaPay intends to leverage Synapse assets and technologies to broaden its financial services offerings. Synapse benefits from business continuity for Synapse&rsquo;s clients and banks.
      </p>
    </li>
    <li>
      <p>
        <b>Analyst QuickTake: </b>
        Leading up to the acquisition, Synapse went through two rounds of layoffs during 2023. The 
        <a href="https://medium.com/@sankaet/a-hard-decision-to-position-us-for-the-future-7f8a38f0fa69">
          initial round 
        </a>
        (~18% of its workforce) was part of a restructuring initiative in June 2023, and 
        <a href="https://sp-edge.com/updates/22521">
          its second round 
        </a>
        (~40% of its workforce) in October 2023 was due to worsening macroeconomic conditions unfavorably impacting business circumstances, clients, and platforms.
      </p>
    </li>
  </ul>
  <p>
    &nbsp;
  </p>
  <p>
  </p>
</div>


<div>
  <p>
    <a href="https://www.businesswire.com/news/home/20240418892696/en/TabaPay-to-Acquire-the-Assets-of-Synapse-Financial-Technologies-Inc.">
      Press release
    </a>
  </p>
  <p>
    <a href="https://www.finextra.com/newsarticle/44016/tabapay-to-acquire-assets-of-bankrupt-baas-provider-synapse?utm_medium=rssfinextra&utm_source=finextrafeed">
      Finextra
    </a>
  </p>
</div>


FinTech Infrastructure

ANALYST_QUICK_TAKE

<div>
 
 <p>TabaPay, a platform for instant money transfers, has acquired the assets and affiliates of Synapse, a provider of banking-as-a-service (BaaS) infrastructure. The acquisition followed Synapse's voluntary bankruptcy filing under Chapter 11. The financial details of the transaction have not been disclosed.</p>
 <p>TabaPay plans to use Synapse's assets and technology to expand its own financial services offerings. The deal also ensures continuity for Synapse’s clients and associated banks.</p>
 
</div> <p><b>Analyst QuickTake:<br>
 </b> Leading up to the acquisition, Synapse went through two rounds of layoffs during 2023. The <a href="https:<br>
//medium.com/@sankaet/a-hard-decision-to-position-us-for-the-future-7f8a38f0fa69"> initial round </a> (~18% of its workforce) was part of a restructuring initiative in June 2023, and <a href="https:<br>
//sp-edge.com/updates/22521"> its second round </a> (~40% of its workforce) in October 2023 was due to worsening macroeconomic conditions unfavorably impacting business circumstances, clients, and platforms.</p>

TabaPay acquires Synapse to expand offerings

DISRUPTOR_PRESENT

BaaS provider Synapse has made 86 employees redundant, equivalent to 40% of its workforce, due to the negative effects of current economic conditions on its business, clients, and platforms. The company will not be offering severance payments to affected employees but two investors, CoreVC and a16z, plan to relocate some staff to other portfolio companies. Analyst QuickTake: This marks Synapse’s second round of layoffs, coming nearly four months after its initial round of layoff (~18% of its workforce) as part of a restructuring initiative in June 2023. Meanwhile, the FinTech space has recently witnessed several companies downsizing their workforce as a cost minimization strategy to drive profitability amidst unfavorable economic conditions. Earlier this year, layoffs were seen in Marqeta (around 15% of its workforce in May), as well as Paddle and Finastra (in January). Meanwhile, we saw leading disruptors Plaid and Stripe laying off around 20% and 14% of their workforce late last year, respectively.

All Updates

TabaPay acquires Synapse to expand offerings

Synapse lays off nearly 40% of workforce

Synapse partners with TrueAccord to offer debt collection services