SoFi to acquire banking software company Technisys
SoFi has agreed to acquire Technisys, a Latin America-based banking software company, for $1.1 billion in an all-stock deal. SoFi estimates that the acquisition will generate up to $800 million in additional revenue and up to $85 million in cost savings through 2025.
Why it matters: SoFi, which recently became a bank after acquiring Golden Pacific Bancorp, is continuing its acquisition spree, which has included Galileo Financial Technologies for $1.2 billion in 2020.
Details: Technisys' shareholders will receive approximately 84 million shares of SoFi common stock, less than 10% of SoFi's fully diluted share count as of Sept. 30, 2021.
The bottom line: "The deal gives SoFi control of its own core-banking platform, the back-end technology that banks use to power mobile-banking apps, open accounts and keep track of customer deposits." — Peter Rudegeair, WSJ