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Mogo Finance Technology to merge with Difference Capital Financial in stock swap

Mogo Finance Technology Inc. logo is seen in this undated handout photo. THE CANADIAN PRESS/HO, Mogo Finance Technology Inc. *MANDATORY CREDIT*

VANCOUVER — Mogo Finance Technology Inc. has signed a deal to merge with Difference Capital Financial Inc.

Under the agreement, each share of Mogo will be exchanged for one Difference common share.

Once the transaction is complete, Mogo shareholders will own approximately 80 per cent of the combined company which is expected to be named Mogo Inc.

Mogo says the combination will give it access to approximately $9 million to $10 million in cash and give it control of Difference’s portfolio of investments, which collectively have an estimated fair market value of approximately $24 million.

Mogo offers users ways to help them manage and control their finances including products such as free credit score monitoring, identity fraud protection and consumer credit.

The deal is subject to Mogo and Difference shareholder approval, regulatory approval and satisfaction of other customary conditions. It is expected to close in the second quarter of 2019.

The Canadian Press