In an all-stock deal SOFI hoping to revamp the student lender into a full-service bank. SoFi Technologies (SOFI) is acquiring banking-software maker Technisys SA for about $1.1B in an all-stock deal. SOFI is trading $11.39▼ 0.79 (-6.49%) pre-market.
SoFi Technologies Inc. is buying banking-software maker Technisys SA for about $1.1 billion, the latest in a string of deals designed to transform the lender into a one-stop financial shop. Last month, the company received an approval to become a national bank through its proposed acquisition of Golden Pacific Bancorp, Inc., and operate its bank subsidiary as SoFi Bank, National Association.
Technisys is expected to operate as an independent subsidiary of SoFi Technologies, Inc. and be part of its Technology Platform offering, with Miguel Santos continuing as CEO.
The former SPAC, who recently has been busy reshaping it’s business with banking licenses and a heavy marketing campaign has weighed further into the acquisition game. 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.
The acquisition is forecast generate up to $800M in additional revenue through 2025 and will also create up to $85M in cost savings over a period of time.
Technisys’ shareholders will receive consideration of ~84M shares of SoFi common stock, representing an aggregate value of approximately $1.1B based on the volume weighted average price of company’s common stock for the 20-trading day period ended February 15, 2022. The transaction is expected to close by the second quarter of 2022.
Source: SOFI
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