Galileo Parent Company, SoFi, Buys FinTech Infrastructure Firm, Technisys, for $1.1 Billion in Stock
Post-acquisition, Technisys will be vertically integrated with Utah-HQ'd Galileo
Early this morning, SoFi Technologies (the parent company of Sandy, Utah-based Galileo Financial Technologies) announced it will spend $1.1 billion to acquire Miami, Florida based Technisys.
According to the SoFi news release:
"The acquisition of Technisys adds a unique, strategic technology and business for SoFi in pursuing its ambition to provide best-of-breed products as a one-stop-shop financial services platform and for Galileo, in SoFi’s overall pursuit to build the AWS of fintech. The combined technology stack will create what is expected to be the only end-to-end vertically integrated banking technology stack, from user interface development capabilities to a customizable multi-product banking core and ledger with fully integrated processing and card issuing available for SoFi products and Galileo/Technisys partners.
"The combination of Technisys’ platform with Galileo will uniquely support multiple products – including checking, savings, deposits, lending, and credit cards – as well as future products, all surfaced through industry-leading APIs. Together, Galileo and Technisys are expected to enable the combined company to meet both the expanding needs of their existing partners, as well as serve additional established banks, fintechs and non-financial brands looking to enter financial services."
Post-acquisition, it's expected that the Galileo/Technisys combined tech platform will generate
- A cumulative $500 to $800 million through year-end 2025, at high incremental margins, while also
- Producing approximately $75 to $85 million in cumulative cost savings from 2023 to 2025, and
- Generate approximately $60 to $70 million annually thereafter.
Looks like a pretty big deal to us. Bravo!