SoFi / Technisys 2022
SoFi acquired Technisys for $1.1B on February 22, 2022.
- Target
- Technisys
- Acquirer
- SoFi
- Deal value
- $1.1B
- Deal type
- Stock
- Announced
- February 22, 2022
- Sub-sector
- BaaS
Transaction overview
- SoFi announced the acquisition of Technisys on February 22, 2022, for approximately $1.1 billion in stock.
- Consideration consisted entirely of SoFi common shares; no cash component was reported.
- The deal closed on March 1, 2022, roughly one week after announcement.
- Technisys is a cloud-native core banking platform provider headquartered in Buenos Aires, Argentina.
- The platform served more than 60 financial institutions across Latin America and the United States at the time of the deal.
- SoFi is a U.S. consumer fintech company offering personal loans, student loan refinancing, investing, and banking products.
- SoFi's stated rationale was to bring core banking technology in-house rather than rely on third-party processors.
- The acquisition followed SoFi's receipt of a national bank charter in January 2022.
Why it matters
- The deal gave SoFi a proprietary core banking stack, reducing dependence on external processors such as Galileo for certain functions.
- Technisys's multi-product, multi-currency architecture was positioned to support SoFi's ambition to sell banking infrastructure to third-party financial institutions.
Strategic rationale
SoFi adds cloud-native core banking platform to pair with Galileo and own the full BaaS stack from issuer processing through to core ledger.
Deal terms & multiples
About Technisys
Technisys is a cloud-native core banking software company founded in 1996 and headquartered in Buenos Aires, Argentina, with offices in the United States. The company's Cyberbank platform allows financial institutions to configure deposit, lending, and card products on a single core without legacy batch-processing constraints. At the time of the acquisition, Technisys served more than 60 banks and fintechs, primarily in Latin America. Clients included Itaú, Bradesco, and several regional U.S. credit unions.
- Founded
- 1996
- HQ
- Argentina
- Employees
- 1,000
- Key metric
- 60+ financial institution clients across Latin America and the U.S. at close
About SoFi NASDAQ: SOFI
SoFi Technologies is a U.S.-based consumer fintech company founded in 2011 and headquartered in San Francisco. The company offers student loan refinancing, personal loans, mortgages, credit cards, brokerage accounts, and FDIC-insured banking products under one app. SoFi went public via SPAC merger in June 2021 and received a national bank charter through the acquisition of Golden Pacific Bancorp in January 2022. The company also owns Galileo Financial Technologies, a payments and account infrastructure platform acquired in 2020 for $1.2 billion.
- Founded
- 2011
- Ticker
- NASDAQ: SOFI
Frequently asked questions
How much did SoFi pay for Technisys?
SoFi paid approximately $1.1 billion, entirely in SoFi common stock. No cash was included in the consideration.
When did the SoFi Technisys deal close?
The deal closed on March 1, 2022, about one week after the February 22, 2022 announcement.
What does Technisys do?
Technisys builds cloud-native core banking software. Its Cyberbank platform lets banks and fintechs run deposit, lending, and card products on a single configurable core.
Why did SoFi acquire Technisys?
SoFi wanted to own its core banking technology rather than depend on outside processors. The acquisition also gave SoFi a platform to sell banking infrastructure services to other financial institutions.
How does Technisys relate to Galileo?
SoFi acquired Galileo in 2020 for payments and account issuance infrastructure. Technisys adds a core banking layer, giving SoFi a more complete in-house technology stack.
Where is Technisys headquartered?
Technisys is headquartered in Buenos Aires, Argentina, with additional offices in the United States.
Sources
- sofi.com /press/sofi-to-acquire-technisys/