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Fintech firm XTM said Thursday that it has closed the sale of certain assets to Pateno Payments, a subsidiary of Digital Commerce Group, in a deal valued at $3 million.
The transaction, first disclosed in April, was finalised on 17 September and marks what the company described as a “pivotal milestone” on its path to profitability.
The proceeds will be used to strengthen XTM’s balance sheet and reduce costs, with the company confirming that it has repaid its senior debt facility with 2Shores Capital in full. Security on the facility has now been released.
At completion, XTM received the net proceeds, subject to customary adjustments and a 90-day holdback for potential post-closing changes and debt settlement.
The sale is expected to lower monthly operating expenses significantly and help the company achieve cash neutrality.
XTM will continue to use the QRails processing platform to support clients, avoiding the cost and complexity of running the infrastructure in-house.
The firm retains full ownership of its proprietary AnyDay earned wage access platform, along with payroll and time and attendance integrations and key customer relationships.
Meanwhile, QRails’ core engineering team has moved to Pateno, ensuring continuity in service and innovation.
XTM highlighted several benefits for shareholders, including improved payment economics, reduced cash burn, non-dilutive growth capital, and enhanced scalability. Management said the move positions the business to accelerate growth while focusing on core services.
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