Tuesday, February 22, 2022

SoFi to buy cloud-based banking platform for $1.1 billion

SoFi Technologies in San Francisco has agreed to buy Technisys, a cloud-based, digital banking platform.

SoFi said in a press release Tuesday that it will pay about $1.1 billion in stock for Miami-based Technisys. The deal is expected to close in the second quarter. 

“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,” Anthony Noto, SoFi’s CEO, said in the release. 

The acquisition “is an essential building block in delivering on our member-centric, digital one-stop-shop experience,” Noto added. “Technisys has emerged as a proven leader in Gen 3 multi-product banking core technology.” 

The deal is expected to add $500 million to $800 million of revenue through the end of 2025. Related moves should lower SoFi’s expenses by $75 million to $85 million from 2023 to 2025 and by $60 million to $70 million annually beginning in 2026. 

Technisys is expected to operate as an independent unit with Miguel Santos remaining as its CEO.

Allen & Co. and Wachtell, Lipton, Rosen & Katz advised SoFi. Gunderson Dettmer Stough Villeneuve Franklin & Hachigian advised Technisys.

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