SoFi to Buy Banking-Infrastructure Firm Technisys for About $1.1 Billion
Wall Street Journal, February 22, 2022
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.
The all-stock deal is equivalent to roughly 10% of SoFi’s market value. 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.
Under CEO Anthony Noto, SoFi has looked to deal making to branch out beyond its roots as a lender that focused on refinancing student debt. This month, it became a bank when it completed its acquisition of Golden Pacific Bancorp Inc., a California community lender. In 2020, SoFi agreed to spend about $1.2 billion on Galileo Financial Technologies Inc., a financial-infrastructure company focused on issuing debit cards.
SoFi will use Technisys’s platform to roll out personalized financial services to its own banking customers. It will also allow other banks and financial-technology companies to use the platform, which today is mostly used by banks in Latin America.
SoFi estimates that the Technisys acquisition will generate up to $800 million in additional revenue through 2025. It will also create up to $85 million in cost savings over the span. SoFi currently relies on one legacy software vendor to power its banking and savings accounts and a separate one to power its credit card. Technisys will allow it to bring those capabilities in-house.
Read the article in the Wall Street Journal.