Money-moving fintech TabaPay has withdrawn from its agreement to acquire the assets of the bankrupt Banking-as-a-Service platform, Synapse.
A TabaPay spokesperson informed TechCrunch that a “termination notice of the purchase agreement” was sent this morning due to the failure to meet the closing conditions of the agreement. This development was first reported by Jason Mikula from Fintech Business Weekly.
TabaPay had initially agreed to buy Synapse’s assets in April, following Synapse’s decision to lay off 40% of its workforce after losing a major client. This layoff came after an earlier reduction of 18% in staff due to shifting macroeconomic conditions.
Synapse CEO Sankaet Pathak stated to TechCrunch that he believes TabaPay remains interested in finalizing the acquisition but that the deal fell through because their banking partner, Evolve Bank & Trust, “failed to meet their closing condition,” specifically related to fully funding its For Benefit Of (FBO) accounts.
In contrast, Evolve has refuted this claim, telling TechCrunch, “Evolve was not party to the TabaPay acquisition, and we did not have closing conditions to meet. However, we did have a settlement agreement with Synapse that had a funding condition, and Evolve satisfied that condition.”