Q2 Holdings, Inc. (NYSE: QTWO), a provider of secure, cloud-based virtual banking solutions, today announced the acquisition of Des Moines, Iowa-based Social Money, a financial services software company that offers a modern, cloud-based platform that assists financial institutions in their direct digital strategies, best represented in their award-winning SmartyPig product.
The addition of Social Money marks Q2’s second acquisition in 2015, and further fuels its development of secure banking platform solutions for community financial institutions across the country. Q2 acquired all of the outstanding interests of Social Money in exchange for $10.6 million cash payable at closing, subject to a customary working capital adjustment.
“Social Money’s technology portfolio and expertise make this a strategic acquisition that will help Q2’s customers expand their reach, grow market share and engage account holders,” said Matt Flake, president and CEO of Q2. “The digital banking experience matters when it comes to reaching millennials and retaining existing account holders. We are committed to providing community financial institutions innovative technology specifically designed for the increasingly digital modern consumer, and I believe the addition of Social Money will help us do just that.”
The acquisition of Social Money will provide Q2 with additional expertise in the direct-to-digital arena, a critical area for Q2’s customer base where consumers are increasingly more digital and branchless in their banking habits. Social Money creates new ways for financial institutions to address this consumer base while driving down costs and using the resulting savings to provide competitive product offerings.
“The Q2 research and development team is excited to welcome new team members and work with Social Money’s stellar portfolio of technology,” said Adam Anderson, CTO of Q2. “Today’s acquisition allows us to continue to empower community banks and credit unions to easily establish direct-to-digital capabilities in the future.”
Social Money will continue its relationship with existing clients while working directly within Q2’s research and development team to continue to establish innovative offerings for its digital banking channels. Q2 is evaluating the integration of Social Money’s portfolio, and plans to begin offering a rebranded suite of Social Money technologies to its customer base starting in 2016.
Contributed | what does this mean?