SoFi Technologies Inc (NASDAQ:SOFI) is trading lower Tuesday after the company announced it entered into a definitive merger agreement to acquire Technisys.
Technisys operates a cloud-native, digital multi-product core banking platform. The platform will help SoFi provide best-of-breed products as a one-stop-shop financial services platform, as well as build on the company's pursuit to become the Amazon.com Inc (NASDAQ:AMZN) Web Services of fintech.
"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," said Anthony Noto, CEO of SoFi.
"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."
Technisys’ shareholders will receive approximately 84 million shares of SoFi, worth approximately $1.1 billion. The transaction is expected to close "by the second quarter."
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SOFI Price Action: Sofi has traded as high as $24.95 over a 52-week period. It's making new lows Tuesday.
The stock was down 10.3% at $10.24 at time of publication.
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