from the article:
stock price dropped more than 8% Tuesday after the American online personal finance company announced plans to buy Technisys. According to SoFi, the cost for acquiring the banking software provider platform is $1.1 billion, paid in stock.
SoFi’s stock is currently trading at around $10.47 after retracing by 92 cents following the acquisition announcement. The fintech company stated that it expects the deal to generate up to $800 in additional revenue through 2025. Furthermore, SoFi added that it projects up to $85 million in cost savings for the same period. It also expects up to $60 to $70 million annually after that.stock price dropped more than 8% Tuesday after the American online personal finance company announced plans to buy Technisys. According to SoFi, the cost for acquiring the banking software provider platform is $1.1 billion, paid in stock.
SoFi’s stock is currently trading at around $10.47 after retracing by 92 cents following the acquisition announcement. The fintech company stated that it expects the deal to generate up to $800 in additional revenue through 2025. Furthermore, SoFi added that it projects up to $85 million in cost savings for the same period. It also expects up to $60 to $70 million annually after that.
pursuant to the arrangement, the shareholders at Technisys will receive around 84 million shares of SoFi stock. This amount is less than 10% of SoFi’s fully diluted share count. Also, SoFi says that it expects the transaction to conclude by the second quarter.
SoFi’s chief executive officer Anthony Noto weighed in on the development. Noto generally commended Technisys’ track record and the groundbreaking technology it has helped institute in the space. In his own words:
” 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…Under the leadership of co-founder and CEO, Miguel Santos, Technisys has emerged as a proven leader in Gen 3 multi-product banking core technology”
thoughts on this development?
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