US personal banking firm SoFi has sought to bolster its ranks after dropping a cool $1.1b to acquire software firm Technisys. The all-stock deal, which comes out to about 10% of the company’s market value, gives SoFi the ability to power mobile banking apps, track deposits, and open accounts. SoFi has been on a bit of a shopping spree and comes three weeks after SoFi completed its $750m acquisition of California’s Golden Pacific Bank.
“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,” explained Anthony Noto, CEO of SoFi. Under Noto's stewardship, SoFi has sought to go beyond its roots as just a student financing lender and is continuing its journey into becoming a full-fledged bank, which has been backed by its recent purchases.
Why it matters
Businesses are not looking to sit still when it comes to digital innovation. With newer players looking to disrupt the market. SoFi is moving aggressively in its bid to become an established banking option in the US, especially with its recent shopping spree as well as its pick up of Galileo — an application programming interface (API) based payments platform that once powered rivals Chime, Varo, and Revolut.
