A Miami fintech will soon be under the umbrella of SoFi Technologies, a digital personal finance company headquartered in San Francisco.
On Tuesday, SoFi (Nasdaq: SOFI) announced it entered into an agreement to acquire Technisys for about $1.1 billion in an all-stock deal expected to close in the second quarter.
“We are thrilled to bring Technisys’ technology, customer base, and expertise to the larger SoFi Technologies platform,” said Technisys CEO Miguel Santos.
Founded in 1999, Technisys is a cloud-native digital banking platform that supports back-office operations and customer experience interactions for online banks. The firm is backed by $64 million in funding from investors including Menlo Park, California-based Riverwood Capital and Endeavor Catalyst in New York.
Technisys currently has banking and fintech customers – including HSBC, Rellevate, TABbank and Brazil's Banco Itaú – across 16 countries. The company is expected to operate as an independent subsidiary of SoFi after the deal closes, with Santos staying on as CEO.
The acquisition will put SoFi one step closer toward its goal of building the "Amazon Web Services" of fintech. According to a news release, combining Technisys' cloud banking platform with Galileo, SoFi's cloud services provider, will create a vertically integrated banking technology product capable of supporting traditional financial products – like credit cards and checking and savings accounts – and emerging technologies. That will make it possible for SoFi to meet the needs of established banks, fintechs and non-financial brands that want to enter the financial services space.
SoFi reports acquiring Technisys' cloud technology platform, instead of using third-party products, will result in up to $85 million in cost savings from 2023 to 2025 and up to $70 million annually thereafter.
"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," said SoFi CEO Anthony Noto.
The Technisys agreement isn't SoFi's first digital banking infrastructure acquisition. In 2020, it purchased payment software Galileo for $1.2 billion to capitalize on consumers' shift to digital finance.
Shares of SoFi were trading for $10.38 Tuesday afternoon, down almost 9% from market open.
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