Singapore-based Grab said it will acquire a 60% controlling stake in buy-now, pay-later platform Atome Financial for $1.49 billion in cash. The company plans to purchase the remaining 40% about two years after the first transaction closes.
Grab CFO Peter Oey told CNBC’s Squawk Box Asia that the two-stage structure was designed in part to reduce transaction risk from a capital allocation standpoint. He said consumer lending is becoming the “next frontier” for Grab as it expands its financial services business.
Grab shares closed down 3.64% on Nasdaq after the announcement. The company also raised its 2028 outlook and separately said it intends to complete the remaining roughly $900 million of its share repurchase program over the next 12 months.
According to the company, the Atome acquisition should take Grab’s financial services arm beyond its current offerings and lift its capabilities to a new level. Oey said the transaction would be accretive to the business and contributed to the company’s improved 2028 guidance.
Atome works with brands in travel, beauty and e-commerce, giving Grab access to segments where its presence is currently more limited, Oey said. The transaction is expected to close next year, meaning Atome’s contribution should become more meaningful in the latter part of that year and into 2028. Grab expects its financial services segment to generate $500 million in adjusted EBITDA by 2028.
Grab plans to retain Atome’s management team, while the period between the two stages of the deal is expected to give both companies time to work on potential synergies.
Beyond Atome, Oey said micro-investing could become another growth opportunity in Southeast Asia. He added that the company also wants to work with regulators on improving access to fair credit across the region.
