The banking-software company Technisys is being acquired for about $1.1 billion.
SoFi Technologies, a publicly traded digital personal finance company, on Tuesday said it entered into a definitive merger agreement to acquire the privately held, Miami-based Technisys, a leading cloud-native, digital multi-product core banking platform, in an all-stock deal valued at $1.1 billion.
“We are thrilled to bring Technisys’ technology, customer base, and expertise to the larger SoFi Technologies platform,” said Technisys co-founder and CEO Miguel Santos (pictured above), in the announcement of the deal. “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.”
In SoFi’s quest to become a one stop shop, the company will use Technisys’s platform to roll out personalized financial services to its own banking customers, as well as let other banks and fintech companies use the platform. Today the Technisys platform is used primarily by banks in Latin America.
The all-stock deal comes out to nearly 10% of San Francisco-based SoFi’s market value and will give SoFi the ability to power mobile banking apps, track deposit and open accounts. SoFi projects the acquisition will produce $800 million in revenue through 2025 and create up to $85 million in savings in the same timeframe. Before this, SoFi had used vendors; this deal brings the banking and credit card services in-house. SoFi went public last year through a merger with a blank-check company run by tech investor Chamath Palihapitiya.
“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,” said Anthony Noto, CEO of SoFia statement.
Technisys’ revenue growth has been accelerating and generated about $70 million in revenue in 2021, according to SoFi. Technisys serves more than 60 established bank, fintech, and non-financial brands in Latin America and the U.S.
Following the closing of the acquisition, expected in the second quarter, Technisys will operate as an independent subsidiary of SoFi Technologies, and be part of its Technology Platform offering, accoring to SoFi.
Santos will continue as CEO of the Technisys subsidiary.
Under Santos’ leadership, “Technisys has emerged as a proven leader in Gen 3 multi-product banking core technology. We are excited to bring their technology offering under the SoFi Technologies umbrella and deliver it to hundreds of millions of customers worldwide,” Noto said.
Technisys, provider of an innovative digital banking software platform, was founded in Buenos Aires by Santos, Adrian Iglesias and German Pugliese Bassi in 1996, “about 10 years too early,” Santos once said. The company was selected to join the Endeavor network in 2001. It has raised $64 million in venture capital over the years, according to Crunchbase, including a $50 million Series C round in 2019.
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