M&A

February 22, 2022

SoFi Investors Sell on Acquisition Announcement

SoFi plummeted 10% today on news of its M&A deal. SoFi announced its purchase of Technisys SA, a banking-software company, for $1.1 billion… that’s literally 10% of SoFi’s entire market value. 

This deal aims to implement Technisys’ banking technology to jumpstart SoFi’s financial services for its banking users. SoFi will gain a back-end platform capable of sustaining its personal banking app, customer accounts, and customer deposits. 💰 💰

 Despite SoFi’s 10% dump, the company’s CEO Anthony Noto isn’t doubting his play. 💡 Noto shared “We’re not slowing down. The distance between us and others is only going to increase.” The company anticipates an additional $800 million in revenue from Technisys’ capabilities until 2025. 

SoFi went public via SPAC last year, but officially became a bank this year after its acquisition of Golden Pacific Bancorp Inc. and its purchase of Galileo Financial Technologies Inc. for debit card issuance. Although SoFi is moving full-steam ahead, its stock is down a whopping 28% over the last year.

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M&A

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An M&A Mashup

It was another busy Monday of M&A and fundraising news, so let’s quickly recap. 👇

First up is Macy’s, which saw shares soar 20% on reports that the 165-year-old retailer is considering a buyout offer from Arkhouse Management and Brigade Capital Management. It’s unclear how the company’s board feels about the offer, but clearly, these firms have value in Macy’s real estate. Analysts speculate that the investor group may sell off real estate and spin off its e-commerce business to deliver short-term gains. However, that would come at the expense of the core retail business people know and love it for. 🏬

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