The Nasdaq-listed financial technology company, Oportun announced the completion of the acquisition of Digit, a prominent neo banking platform that provides different services including automated savings, banking tools and investing, today.
Oportun acquired the neo banking platform for a total of almost $211.1 million, including $112.6 million in cash and nearly $98.5 million in Oportun common stock and/or restricted stock units to be settled in Oportun common stock on the basis of a price of $24.477 per share of the common stock.
Oportun aims to enhance its AI and digital capabilities through the latest acquisition. The recently acquired company will operate as a business unit within Oportun. According to the fintech company, all of Digit’s employees have joined Oportun and will continue their job roles.
“This is a transformational deal that positions Oportun for even more future success,” said Raul Vazquez, the CEO of Oportun. “With this transaction, we are combining two mission-driven organizations with complementary services, capabilities and member bases.”
According to Oportun, the company has closed a financing facility from Jefferies to finance the cash consideration.
Acquisition
Founded in 2013, Digit has more than 600,000 paying members. The company uses innovative technologies like AI to facilitate its customers in financial services.
“Enabled by AI, Digit automatically sets aside funds for members by analyzing cash flow and recognizing how much can be saved and invested today, while remaining well within a member’s immediate financial means. Digit will operate as a business unit within Oportun and continue to be led by Digit founder and CEO, Ethan Bloch. All of Digit’s 100+ employees have joined Oportun and will continue their job functions,” Oportun mentioned.
“J.P. Morgan served as exclusive financial advisor and Wilson Sonsini Goodrich & Rosati served as legal counsel to Oportun. Jefferies provided the financing facility. Goodwin Procter served as legal counsel to Digit. Financial Technology Partners served as exclusive strategic and financial advisors to Digit,” the company added.
