Online lender SoFi Technologies has agreed to buy cloud-native core banking platform Technisys in an all-stock deal worth around $1.1 billion.
The deal bolsters SoFi's effort to build a full-stack, multi-product digital banking technology platform or, as the firm puts it: "the AWS of fintech".
Technisys will operate alongside Galileo, the financial services API and payments platform that SoFi acquired for $1.2 billion in 2020 and operates as an independent subsidiary.
The combination of Technisys’ platform with Galileo will support banks and fintechs in rolling out products - including checking, savings, deposits, lending, and credit cards - via APIs.
SoFi is also planning on migrating its own business off its current multiple third-party cores to a single one owned and operated by Technisys, saving money and allowing it to innovate faster and offer greater personalisation for its more than three million members.
"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," says Anthony Noto, CEO of SoFi.
The deal will see Technisys’ shareholders receive about 84 million shares of SoFi common stock with 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.