Diginex’s bold acquisitions fail to lift sinking share price
Diginex has completed two major acquisitions in quick succession, expanding its sustainability and compliance news. The company purchased Berlin-based AI platform Plan A for €55 million and finalised the takeover of The Remedy Project, a labour rights compliance specialist. Despite these moves, the firm’s share price fell sharply over the past week, dropping around 32%.
Diginex acquired Plan A in a deal combining €3 million in cash and 6.72 million common shares, valued at €52 million. The transaction brought in Visa and Deutsche Bank as significant shareholders. Plan A specialises in ESG reporting, carbon tracking, and decarbonisation tools, tapping into a market projected to reach $80–100 billion by 2030.
On the same day, Diginex confirmed the purchase of The Remedy Project, which monitors human rights and labour standards in global supply chains. This acquisition included 1 million shares upfront, with another 1 million shares tied to performance milestones over three years. The announcements, however, failed to boost investor confidence. From January 5 to 9, Diginex’s share price declined steadily, hitting $3.08 on the final day. Trading volume spiked to over 2.7 million shares on January 9, likely due to concerns about share dilution from the new issuances. Financial results showed a mixed picture. Revenue surged by 293% to $2.0 million in the latest half-year report, but operating losses widened to $6.0 million.
The two acquisitions position Diginex as a broader player in sustainability and compliance news, with new backing from major financial institutions. Yet the sharp drop in share price and rising trading volumes suggest investor unease about dilution and widening losses. The company now faces the challenge of integrating its new assets while addressing market concerns.
