Online personal finance company SoFi has acquired financial services API and payments platform Galileo Financial Technologies in a deal worth $1.2bn, comprising of cash and stock.
Galileo offers a digital payments platform based upon APIs, enabling various payment services. Its tools enable a client to implement bill pay, early paycheck direct deposit, direct deposit, ACH transfer, transaction notifications, check balance, point of sale authorisation and more.
The company claims to have processed more than $53bn of annualised payments volume in March 2020, which is up from $26bn in September 2019.
By working together, they hope to increase the development of new services for Galileo’s clients and acquiring more customers and partners.
The addition of Galileo will strengthen SoFi’s capabilities by extending the reach of its products to more partners in the US and international markets.
Following the acquisition, Galileo will collaborate with SoFi to accelerate its technology roadmap needs for consumer finance offerings as well as offering the entire SoFi suite of products and services to Galileo partners.
SoFi CEO Anthony Noto said, “The response by our members to our innovation across borrowing, saving, spending, and investing has motivated us to think bigger, bolder and more expansively given the insatiable consumer appetite for financial services innovation.
“Together with Galileo, we will partner to build on our companies’ strengths to drive even greater financial technology innovation, making those products and services available to both current and future partners. While we march forward on our mission to help people achieve financial independence through our own direct efforts, with Galileo, we can enable a broader ecosystem of companies to join us in helping the world achieve financial independence.”
Last year, SoFi closed a $500m funding round from Qatar Investment Authority which valued the personal finance company at $4.3bn.
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