SoFi to Acquire Technisys for $1.1 Billion

SoFi to Acquire Technisys for $1.1 Billion
Headquarters of the American online personal finance company SoFi Technologies Inc. in San Francisco in June 2021. (Google Maps/Screenshot via The Epoch Times)

Digital personal finance company SoFi Technologies Inc. agreed to acquire Technisys, a cloud-native, digital multi-product core banking platform.

Technisys’ shareholders will receive aggregate consideration of 84 million shares of SoFi, less than 10 percent of SoFi’s fully diluted share count as of September 30, 2021.

The shares have an aggregate value of $1.1 billion based on the volume-weighted average price of SoFi common stock for the 20-trading day period ended Feb. 15, 2022.

The transaction will be likely to close by the second quarter of 2022.

“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,” said Anthony Noto, CEO of SoFi.

The estimated incremental revenue from the acquisition, including base revenue of Technisys and revenue synergies of the vertically integrated capabilities, will likely add a cumulative $500 million–$800 million through year-end 2025, at high incremental margins.

SoFi sees the shift and the vertical integration with Galileo to create $75 million–$85 million in cumulative cost savings from 2023–2025 and $60 million–$70 million annually after that.

Following the closing of the acquisition, SoFi expects Technisys to be an independent subsidiary and be part of its Technology Platform offering, with Miguel Santos continuing as CEO.

By Anusuya Lahiri
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.