SoFi Technologies Inc, a US online personal finance firm based in San Francisco, has announced today that it has entered into a definitive merger agreement to buy Technisys, a banking software creator based in Miami.
Anthony Noto, the CEO of SoFi, disclosed that he turned to deal making in order to transform the one-time student lender.
As a result, SoFi is purchasing Technisys for about $1.1 billion. The deal, which is roughly about 10% of SoFi's market value, is set to give the firm control over Technisys’ platform and back-end technology used to keep track of customer deposits, manage user accounts and power banking apps.
Sofi estimates that the Technisys’ acquisition will bring up to $800 million in additional revenue through 2025.
Moreover, Noto elaborated about the takeover: “Technisys has built an attractive, fast-growth business with a unique and critical strategic technology that all leading financial services companies will need in order to keep pace with digital innovation. The acquisition of Technisys is an essential building block in delivering on our member-centric, digital one-stop-shop experience for SoFi members and our partners through Galileo, our provider of fintech cloud services.”
Efforts to Accelerate Business Growth
SoFi has recently embraced deal making strategies in order to move beyond its roots as a lender that focused on refinancing student debt. The digital personal finance company has plans to accelerate the expansion of its business operations in the future.
Last month, SoFi became a bank when it completed its acquisition of Golden Pacific bank based in California. SoFi obtained approval from the regulatory authorities to operate as a national bank through the acquisition.
In an effort to get a national bank charter, SoFi announced a definitive agreement last year to buy Golden Pacific Bancorp.
The purchase of Golden Pacific bank gave Sofi an incredible milestone and elevated its ability to help even more people to get their money right and realize their dreams. With a national bank charter, SoFi will be able to lend at more competitive interest rates and provide its members with a high-yielding interest in checking and savings. The firm will also be able to enhance its financial products and services to ensure they efficiently meet the needs of its members, business partners and communities across the country while continuing to uphold high regulatory standards and compliance.
