US-based digital personal finance firm SoFi Technologies has signed a definitive agreement to acquire Technisys, a cloud-native core banking platform.
The all-stock transaction is valued at approximately $1.1bn.
Under the agreement, SoFi will offer approximately 84 million shares of its common stock to Technisys’ shareholders, which is under 10% of SoFi’s fully diluted share count as of 30 September 2021.
SoFi said Technisys brings technology and business, which will allow it to further its aim of becoming a ‘one-stop-shop’ financial services platform.
SoFi CEO Anthony Noto said: “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.”
The integration of Technisys’ platform with Galileo will support products such as checking, savings, deposits, lending, and credit cards along with future products through APIs.
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With the combined capabilities of Galileo and Technisys, SoFi expects to meet the needs of their existing partners, serve banks, fintechs and non-financial brands looking to enter the financial services space.
Technisys CEO Miguel Santos said: “We are thrilled to bring Technisys’ technology, customer base, and expertise to the larger SoFi Technologies platform. We are confident that together, we can offer a best-in-class financial experience for traditional and non-traditional financial services players alike at a greater velocity than ever before.”