SoFi announces agreement to acquire digital banking platform Technisys

Digital personal finance company
SoFi Technologies has announced that it has entered into a definitive merger agreement to acquire Technisys, a leading cloud-native, digital multi-product core banking platform.

Technisys’ shareholders will receive aggregate consideration of approximately 84 million shares of SoFi common stock.

These shares have an aggregate value of approximately $1.1 billion based on the volume weighted average price of SoFi common stock for the 20-trading day period ended February 15, 2022.

The transaction is expected to close by the second quarter of 2022, subject to the satisfaction of closing conditions.

The acquisition of Technisys adds a unique, strategic technology and business for SoFi in pursuing its ambition to provide best-of-breed products as a one-stop-shop financial services platform and for Galileo, in SoFi’s overall pursuit to build the AWS of fintech.

The combined technology stack will create what is expected to be the only end-to-end vertically integrated banking technology stack, from user interface development capabilities to a customizable multi-product banking core and ledger with fully integrated processing and card issuing available for SoFi products and Galileo/Technisys partners.

The acquisition will also add to the high revenue growth rate of SoFi and accelerate its three-year revenue CAGR.

SoFi expects to leverage Technisys’ modern technology stack to capture significant savings in third-party costs by integrating Technisys.

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