SoFi Technologies will pay roughly $1.1 billion for banking-software company Technisys, part of a series of deals by the personal finance firm to bolster its banking offerings.
According to a press release Tuesday (Feb. 22), 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 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 a single legacy software vendor to handle its banking and savings accounts and a separate one for its credit card. This deal lets the companies take care of those services in-house.
“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,” said Anthony Noto, CEO of SoFi.
The company also said it will use Technisys’ platform to offer personalized financial services to its banking customers, and allow other banks and financial-technology companies access the platform, which is currently used primarily by banks in Latin America.
Read more: SoFi Concludes $750M Purchase of Golden Pacific Bank
The purchase comes three weeks after SoFi completed its $750 million acquisition of California’s Golden Pacific Bank, with plans to provide automated savings and what it said would be “differentiated checking and savings accounts for easy budgeting.”
As PYMNTS noted at the time, the Golden Pacific purchase puts SoFi in the company of firms like LendingClub, Block (formerly Square) and Varo, all digital upstarts that sought banking charters or have folded banks into their operations.
Based in Silicon Valley and founded in August 2011 as a student loan refinancing service, SoFi has expanded its offerings in the last decade to include things like mortgages, personal loans, credit cards and investing.
See also: SoFi Spends $1.2B To Buy FinTech Galileo
SoFi purchased Galileo Financial Technologies Inc., a financial-infrastructure firm focused on issuing debit cards, for $1.2 billion in 2020.
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