Financial firm Social Finance (SoFi) acquired Payment platform Galileo for 1.2 billion
The crypto friendly, consumer financial services firm Social Finance (SoFi) has acquired global digital payment company Galileo Financial Technologies (Galileo) for 1.2 billion cash and stocks.
As per the press release, SoFi has signed an agreement with Galileo financial Technologies to pay 1.2 billion as an acquisition deal. The deal will include $75 million in cash and $875 million in stock and $250 million in seller financing debt. The deal is dependent on customary closing conditions as well.
How the Partnership will work?
SoFi is focused on financial technology products and through the acquisition, it intends to expand in other parts of the US where Galileo partners are located and also wants to expand internationally. SoFi is also eyeing on the digital solutions market as more consumers and investors are tuning towards digital solutions due to bank closures amidst the corona pandemic.
Galileo and SoFi will join hands to work towards technological innovation for consumer financial offerings that will benefit Galileo’s partners and consumers. The partnership will ensure more digitization and efficient services for Galileo customers.
SoFi products and services will offer more sets of benefits to Galileo customers.
After the acquisition, Galileo will work independently as a subsidiary of Social Finance Inc. under the leadership of Wilkes as CEO.
Statements from the Company leaders:
Clay Wilkes, CEO of Galileo commented that the acquisition will help both partners in the current economic crisis. “He said, “We’re excited to work with SoFi to build on the services that have made Galileo to a leading supplier of infrastructure services to leading financial companies. With the help of the SoFi, we intend to grow with and support all the existing clients and the product roadmaps that they have defined.
CEO of SoFi Anthony Noto said, “While we march forward on the mission forward on our mission to help people achieve financial independence through our direct efforts, with Galileo, we can enable a broader ecosystem of companies to join us in helping the world achieve financial independence.”
More about Galileo and SoFi
Galileo was founded by Clay Wilkes in 2000. It provides financial services API and is a global payments platform that facilitates financial services and investment firms and global fintechs for cross border payments.
San Francisco based Social Finance Inc. (SoFi) was founded in 2011. It is an online personal finance firm that offers education loans, personal loans refinancing, mortgages, investing and banking. It is valued at around 4.3 billion.
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