The acquisition is expected to expedite SoFi’s development of a full-stack, multi-product, digital banking technology platform
Technisys to be acquired by SoFi Technologies in an all-stock deal. (Credit: Pete Linforth from Pixabay)
SoFi Technologies, a US online personal finance company, has agreed to acquire Technisys, a cloud-native, digital multi-product core banking platform, in an all-stock deal valued at around $1.1bn.
As per the terms of the deal, Technisys’ shareholders will be issued nearly 84 million shares of SoFi Technologies’ shares.
Technisys is said to help financial institutions in creating customised financial products at the speed of commerce and in offering customers meaningful recommendations at point of need.
By using data-driven insights and integrating them with its technology, the company is claimed to enable structural flexibility that lets financial institutions build and customise any financial product in real-time.
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.”
SoFi Technologies said that the combination of Technisys’ platform with its Galileo’s financial services API and payments platform will be able to uniquely support multiple products. Some of the products that will be supported by the combination include checking, savings, lending, deposits, and credit cards in addition to future products.
Furthermore, Technisys and Galileo are expected to help the enlarged SoFi Technologies to meet the growing requirements of existing partners apart from catering to additional established banks, non-financial brands, and fintechs planning to foray into financial services.
The deal is also said to help SoFi Technologies in becoming the Amazon Web Services (AWS) of fintech.
SoFi Technologies 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 deal, which is subject to the meeting of closing conditions, is anticipated to close by Q2 2022.
SoFi Technologies is a publicly-listed company that was created recently through the $8.65bn merger between Social Finance (SoFi) and blank cheque company Social Capital Hedosophia Holdings Corp. V.