- Digital personal finance company SoFi Technologies Inc (NASDAQ:SOFI) 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% 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 February 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.
- Price Action: SOFI shares traded lower by 2.99% at $11.05 in the premarket on the last check Tuesday.
Barrington Research Maintains Outperform on Standex International, Raises Price Target to $133
Barrington Research analyst Christopher Howe maintains Standex International (NYSE:SXI) with a Outperform and raises the price target from $113 to $133.
