SoFi Technologies, a personal finance company, announced that it will soon buy the Argentine fintech Technisys SA for around $1.1B.
Argentine fintech Technisys SA is a banking-software producer. The company creates the essential back-end technology that banks require to power mobile banking apps, track transactions, and open accounts.
The acquisition is part of SoFi Technologies’ strategy to transform the lender into a ‘one-stop financial shop’.
“Technisys has built an attractive, fast-growing 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.
SoFi will use the Argentine fintech’s platform to create more personalized financial services for its customers. The acquisition will also enable a wider range of banks and fintechs to use Technisys, which currently serves predominantly Latin American banks.
“This 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,” Noto continued.
The acquisition will build on SoFi’s cloud capabilities, following the purchase of Galileo, an API-based payments platform, in 2020. The combined platforms will support new products that offer checking, saving, deposits, lending, and credit card services.
The transaction is equivalent to roughly 10% of SoFi’s market value. The bank estimates that the transaction will generate up to $800M in additional revenue by the end of 2025.
SoFi recently became an approved bank under the OCC following the acquisition of Golden Pacific Bancorp for $22.3M last month.
SoFi expects to close the acquisition in the second quarter of this year.