SoFi Announces Planned Acquisition of Technisys
What’s already proven to be a big year for SoFi continued today as the FinTech announced its latest acquisition. This morning, the company announced that it had entered into a definitive merger agreement with Technisys. The all-stock deal is valued at approximately $1.1 billion. Currently, the transaction is expected to close by the second quarter of this year.
Founded in 1999, Technisys is a banking-software company that currently powers banking platforms that service more than 100 million customers in 16 countries. In terms of investments, the company has raised a total of $64 million to date, including a $50 million Series C in 2019. According to SoFi, the acquisition will not only help them further develop their financial “one-stop-shop” platform but will also put them closer to their stated goal of building the “AWS of FinTech.”
In a press release regarding the acquisition, 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.
Additionally, Technisys CEO Miguel Santos said of the impending merger, “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.”
SoFi’s acquisition of Technisys comes on the heels of the FinTech completing its purchase of Golden Pacific Bancorp earlier this month. With the close of that deal, SoFi is now a nationally licensed bank and has been rolling out a new banking account option to users. Elsewhere, the company previously acquired Galileo for $1.2 billion last year.
Make no mistake that SoFi’s “AWS of FinTech” goal is a lofty one that could have major implications on the sector as we know it. Nevertheless, the company seems well on its way to achieving such a vision following what is now a trio of major strategic acquisitions. Thus, while SoFi is already a giant in the space now, they appear well-positioned to grow into something far larger going forward. If all goes to plan the current consumer businesses are likely to only represent a small fraction of their revenue in the future.