SoFi Technologies (NASDAQ:SOFI) stock is on the move Tuesday on news that the lending company is acquiring Technisys.
Technisys is a cloud-banking platform and the acquisition will have it acting as an independent subsidiary of SoFi Technologies. It will also be part of SOFI’s Technology Platform offering with current CEO Miguel Santos continuing to lead the company.
Let’s dive further into the acquisition deal that has SOFI stock moving today below!
- SoFi Technologies is using stock to fuel it’s acquisition of Technisys.
- This has it agreeing to give 84 million shares of SOFI stock to Technisys shareholders.
- That represents less than 10% of SoFi’s fully diluted share count as of Sept. 30, 2021.
- The total value of the shares offered in the acquisition deal is $1.1 billion.
- That’s based on the 20-trading day period that ended on Feb. 15, 2022.
- SoFi is expecting an internal rate of return in the mid-teens on a standalone basis through 2025 from the deal.
- It’s also looking for “significant upside” to its internal rate of return when accounting for expected revenue and cost synergies.
- So long as closing conditions are met, the two companies are expecting the acquisition deal to close during the second quarter of 2022.
Anthony Noto, CEO of SoFi, said the following about the deal.
“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.”
SOFI stock is down 2.9% as of Tuesday morning.
Investors searching for the most recent stock market news today are in luck!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
