Diginex Abandons Acquisition Amidst Strong Growth Momentum

In a surprising strategic reversal, RegTech firm Diginex has terminated a planned acquisition. This decision arrives even as the company celebrates robust half-year results and a recently completed purchase, presenting investors with a complex picture of aggressive expansion tempered by newfound caution.

Diginex management announced it would no longer pursue the takeover of "Kindred," stating that proceeding with the transaction at this time is "not justified." This move marks a significant shift in posture for a company that has recently capitalized on every expansion opportunity. Market observers found the announcement unexpected.

The withdrawal, however, may be interpreted as a sign of capital discipline. Operating in an environment where its share price has experienced extreme volatility—swinging between $0.45 and nearly $40—the decision signals that growth is not pursued at any cost. The due diligence process appears to have served as a critical safeguard, preventing capital from being allocated to an unfavorable deal.

Fundamental Performance Provides Counterbalance

This development occurs against a backdrop of strong operational performance. The company's fundamental picture remains bolstered by two key recent events:

Should investors sell immediately? Or is it worth buying Diginex?

• A Completed Deal: On December 18, Diginex finalized the purchase of The Remedy Project Limited, a Hong Kong-based consultancy specializing in supply chains. This acquisition stands and is intended to strategically broaden the firm's ESG portfolio.
• Explosive Revenue Growth: On December 9, Diginex reported a massive 293 percent year-over-year surge in revenue.

The collapse of the Kindred deal does not alter this underlying operational dynamism. It does, however, prompt a more nuanced assessment of the company's mergers and acquisitions strategy. Management's immediate focus is now on profitably integrating recently acquired capabilities into its existing business model.

Market Outlook and Next Steps

Investor attention is likely to shift to the technical chart level of $6.50. Should the shares successfully defend this price point in US trading, the failed acquisition may be viewed as a strategic pruning rather than a setback.

For Diginex leadership, the primary task for the first quarter of 2026 will be to demonstrate the promised synergies from The Remedy Project acquisition. Success in this integration is crucial to justifying the company's current valuation. The abandoned Kindred deal underscores a potentially more selective, risk-aware path forward for its growth agenda.