SoFi Technologies buying banking platform Technisys in $1.1B all-stock deal

Digital personal finance company SoFi Technologies Inc. agreed to acquire Technisys SA, a cloud-native, digital multi-product core banking platform in an all-stock deal worth $1.1 billion.

Technisys' shareholders will receive aggregate consideration of approximately 84 million SoFi common shares, less than 10% of SoFi's fully diluted share count as of Sept. 30, 2021, subject to customary adjustments.

The shares have an aggregate value of about $1.1 billion based on the volume-weighted average price of SoFi common stock for the 20-trading day period ended Feb. 15, according to a press release.

Following the closing of the deal, which is expected by the second quarter, Technisys is anticipated to operate as an independent subsidiary of SoFi and be part of the latter's technology platform offering, with Technisys CEO Miguel Santos continuing as CEO of the resulting unit.

The estimated incremental revenue from the acquisition, including base revenue of Technisys and revenue synergies of the vertically integrated capabilities, is expected to add a cumulative $500 million to $800 million through year-end 2025 to SoFi, at high incremental margins, according to the release.

The acquisition is expected to deliver to SoFi a mid-teens internal rate of return on a stand-alone basis through 2025, with significant upside in the IRR when accounting for anticipated revenue and cost synergies, the release added.

Allen & Co. LLC served as financial adviser, and Wachtell Lipton Rosen & Katz as legal adviser, to SoFi. Gunderson Dettmer Stough Villeneuve Franklin & Hachigian LLP was legal adviser to Technisys.