SoFi Technologies is buying banking-software maker Technisys for approximately $1.1bn, 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, Technisys said, 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.
SoFi offers a range of lending and wealth management services, primarily catering to early-stage professionals and offers variable and fixed rate parent, personal, and MBA loans, mortgage refinancing, and more.
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, a California community lender. In 2020, SoFi agreed to spend about $1.2bn on Galileo Financial Technologies, a financial-infrastructure company focused on issuing debit cards.
SoFi will use Technisys’s platform to roll out personalised 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 $800m in additional revenue through 2025. It will also create up to $85m 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.
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