Social Finance Company (SoFi) has declared today signing an agreement to acquire the digital payment platform Galileo at a total value of $1.2 billion.

The payment will be divided as follows: cash ($75 million), stock ($875 million), and seller financing debt ($250 million).

Deal to boost financial market

Commenting on the deal, Anthony Noto, SoFi CEO, said it will give a boost to the financial market:

“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.”

“While we march forward on our mission to help people achieve financial independence through our own direct efforts, with Galileo, we can enable a broader ecosystem of companies to join us in helping the world achieve financial independence,” he added.

SoFi has more to do this year. Since several banks shut down due to the coronavirus pandemic, more investors are turning to digital solutions like those offered by the financial firm.

Noto said:

“It’s the right time to do something like this — we’re on the precipice of a transition to digital from physical finance. It’s going to serve people in this environment and the need for mobile financial services is only going to accelerate.”

Galileo to operate independently

Galileo will operate as an independent affiliate of Social Finance Inc. In addition, it will collaborate with SoFi to bolster the technology roadmap.

The transaction is subject to regulatory approvals and other customary closing conditions.

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