SoFi Inks Agreement to Acquire Galileo Financial Technologies

https://finovate.com/sofi-inks-agreement-to-acquire-galileo-financial-technologies/
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In a cash and stock deal valued at $1.2 billion, online lender and personal finance innovator SoFi has agreed to acquire financial services API and payments platform, Galileo Financial Technologies.

Galileo enables companies to build innovative consumer and B2B fintech services via its suite of open APIs. The company’s technology powers a variety of functions including:

  • account set-up
  • funding
  • direct deposit
  • ACH transfer
  • IVR
  • early paycheck deposit
  • billpay
  • transaction notifications
  • check balance
  • point of sale authorizations

Galileo processed $53+ billion in annualized payment volume in March of this year, more than doubling its September 2019 tally of $26 billion. Notably, SoFi and Galileo are already quite familiar with each other; SoFi’s Sofi Money solution is currently integrated with Galileo’s payments platform and leverages a number of the platform’s account and events functionalities.

Together, the two companies will further combine their efforts to create value for customers of both firms, who will benefit from a feature set that enables them to participate in the transition from “physical-only to a multi-channel digital and physical platform.”

“SoFi has established itself as a leader in the fintech sector, providing our more than one million members a full array of financial products to help them get their money right,” SoFi CEO Anthony Noto said. He credited SoFi’s members for motivating the company to continue innovating, and for encouraging “bigger, bolder, and more expansive” thinking. “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.”

Galileo will operate as an independent subsidiary of SoFi, post-acquisition, with Galileo CEO Clay Wilkes remaining on board to continue leading the company. Praising SoFi’s suite of solutions for borrowing, saving, spending, and investing, Wilkes said, “these are products that many of our leading fintech clients are asking for. Distributing products through our enterprise class API is the vision behind this combination. I think it’s very powerful.”

SoFi made its Finovate debut in 2017, partnering with Quovo to present How Quovo and SoFi Perfected Bank Authentication at our developers conference, FinDEVr Silicon Valley. The company, based in San Francisco, California and founded in 2011, has raised $2.5 billion in funding, earning a valuation of $4.3 billion as of May of last year.

https://finovate.com/sofi-inks-agreement-to-acquire-galileo-financial-technologies/