Kakao Pay, a South Korean fintech subsidiary of Kakao Corp., will acquire a 51% stake in Siebert Financial Corp. (NASDAQ: SIEB) in two transactions.
The first will be the acquisition of a 19.9% stake for approximately $17 million, followed by an additional 31.1% stake, subject to shareholder and regulatory approvals.
The Gebbia family will retain a significant ownership stake, and Siebert's current management team will continue to oversee the company's operations.
The partnership and capital infusion will accelerate Siebert's growth plans, expand its platform and enhance its distribution capabilities.
In addition, Kakao Pay, which has approximately 40 million registered users, will leverage its technology expertise to strengthen Siebert's business and growth strategy while providing an enhanced user experience.
Kakao Pay has served the Korean market since 2014, providing online and offline payment, money transfer, investment, membership, bill payment, and authentication services.
Its subsidiary, Kakao Pay Securities, allows users to invest in various financial products and currently offers the lowest transaction fee for online trading of U.S. stocks in Korea.
Gloria E. Gebbia, Siebert's majority shareholder and board member, said she is excited about the partnership with Kakao Pay, which will provide significant financial resources to invest in key business areas while leveraging Kakao Pay's expertise and technological capabilities.
Won-Keun Shin, CEO of Kakao Pay, emphasized the company's commitment to enhancing the user experience and seeking new opportunities for innovation in the global market.