SoFi to buy Technisys in $1.1bn all-share deal

Online personal finance company SoFi Technologies has agreed to buy cloud-based banking infrastructure firm Technisys in an all-share $1.1bn deal.

Under the terms of the transaction, expected to close by the second quarter, Technisys will receive around 84m shares of SoFi common stock, which is less than 10% of its fully-diluted share count.

SoFi chief executive Anthony Noto said: "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. 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.

"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. We are excited to bring their technology offering under the SoFi Technologies umbrella and deliver it to hundreds of millions of customers worldwide."

The deal is expected to deliver to SoFi a mid-teens internal rate of return on a standalone basis through 2025, with significant upside in the IRR when accounting for anticipated revenue and cost synergies.