SoFi Technologies, a personal finance company, announced that it will soon buy the Argentine fintech Technisys SA for around $1.1B.
Argentine fintech Technisys SA is a banking-software producer.
The company creates the essential back-end technology that banks require to power mobile banking apps, track transactions, and open accounts.
The acquisition is part of SoFi Technologies’ strategy to transform the lender into a ‘one-stop financial shop’.
SoFi will use the Argentine fintech platform to create more personalized financial services for its customers.
The acquisition will also enable a wider range of banks and fintech to use Technisys, which currently serves predominantly Latin American banks.
The acquisition will build on SoFi’s cloud capabilities, following the purchase of Galileo, an API-based payments platform, in 2020.
The combined platforms will support new products that offer checking, saving, deposits, lending, and credit card services.
The transaction is equivalent to roughly 10% of SoFi’s market value.
The bank estimates that the transaction will generate up to $800M in additional revenue by the end of 2025
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