SoFi Technologies Inc.'s acquisition of Technisys SA marks the largest bank purchase of an information technology company since 2012.
The deal was announced Feb. 22 and had a value of $956.8 million at announcement, according to S&P Global Market Intelligence data. The estimated incremental revenue from the acquisition of the cloud-native, digital multiproduct core banking platform is expected to add a cumulative $500 million to $800 million to SoFi through year-end 2025.
Bank-infotech deals
The second-largest bank-infotech deal in the past 10 years was Morgan Stanley's purchase of Solium Capital Inc., a provider of software as a service for equity administration, financial reporting and compliance, for $828.9 million at announcement. The transaction was announced in February 2019.
Two other deals announced in 2022 were part of the list of largest acquisitions of infotech companies by banks since 2012. KeyCorp is poised to acquire GradFin LLC, a public service loan forgiveness counseling provider, for $72.0 million. Webster Financial Corp.'s $55.3 million acquisition of Bend Financial Inc., a cloud-based platform solutions provider for health savings accounts, is also part of the list.
Three deals involving Pathward Financial Inc., formerly Meta Financial Group Inc., as a buyer were among the biggest bank-infotech deals. The company announced its acquisition of Specialty Consumer Services LP for $51.2 million in November 2016, Fort Knox Financial Services Corp. for $50.0 million in July 2015 and EPS Financial LLC for $43.6 million in October 2016.
Bank-fintech deals
Two State Street Corp. acquisitions topped the list of the largest bank deals for financial technology and payments companies by deal value since 2012: the acquisition of the investor services business of Brown Brothers Harriman & Co. and Charles River Systems Inc. The Brown Brothers Harriman deal, announced in September 2021, had a value of $3.5 billion at announcement. The Charles River Systems deal, disclosed in July 2018, was valued at $2.6 billion.
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Two transactions with Goldman Sachs Group Inc. as a buyer also made the list. Goldman Sachs' purchase of point-of-sale lender GreenSky Inc., announced in September 2021, was the third-largest bank-fintech deal in the past 10 years, valued at $2.24 billion on the announcement date.
The acquisition of TransUnion Corp. by an investor group, comprised of Goldman Sachs and Advent International Corp., announced in February 2012 and valued at $1.69 billion, is the fourth largest.
