Peak Fintech Group Inc, a Fintech service provider and manager of the Cubeler Business Hub, announced that it has acquired Huayan Kun Tai Technology Company Ltd, which offers insurance companies SaaS solutions. With the acquisition of the Heartbeat Insurance Platform, Peak Fintech brings analytics and artificial intelligence expertise to the insurance industry.
Huayan CEO Kai Cui, said, “The Business Hub is simply the future of B2B related transactions in my opinion. Regardless of the products or services you offer, if you are a business selling to other businesses, the idea of being part of a network that uses data and AI to find and match you with clients eliminates cashflow issues and generally helps you be more efficient is a very compelling proposition. I also commend the Company for continuing to listen to the needs of the Hub’s members to bring them the solutions they’ve asked for to help their businesses thrive. It’s that dedication to the success of its members and the constant pursuit to do better for them that has led to this transaction between our two entities and one of the many reasons we’re so excited to be joining the Peak family. From an operational standpoint, we believe that pairing the Business Hub’s analytical and AI capabilities with the Heartbeat platform will allow us to improve our existing product offering, attract new members and users, and even work with insurers to develop new products specific to certain industries, all of which should bring a whole new dimension to the Business Hub and increase its impact on B2B transactions in China.”
A majority of Huayan’s solutions can be accessed using the company’s managed product management and broker platform “Heartbeat”; subscribers pay a subscription fee and commission-based service fees. Xinxiang Technologies Ltd., Peak’s subsidiary that was created in the second quarter of 2021 to provide products and services related to insurance to Business Hub, will receive the assets, employees, and operations from Peak.
Peak will pay Huayan and its shareholders a total of $31.0M, of which $11.0M will be payable in cash for Huayan to use as it winds down its operations and transfers them to Xinxiang. Xinxiang will have to obtain certain net income targets to qualify for $20M in common shares of Peak, which will be paid to Huayan within ten business days, and $14.0M over a three-year period.