Fintech Giant SoFi To Buy Banking Platform Technisys For $1.1B

There’s a big new deal in the fintech world. SoFi, the publicly-traded fintech giant, has struck a deal to buy…

SoFi logo

There’s a big new deal in the fintech world. SoFi, the publicly-traded fintech giant, has struck a deal to buy Technisys, a company that makes software for banking operations. SoFi will pay roughly $1.1bn in shares for Technisys, marking a good exit for a company that raised just about $60mn from VCs.

  • Technisys provides digital banking technology and software used by financial institutions. The company was founded back in 1999 in Argentina but relocated to Miami, USA, in 2019 after raising $50mn to expand into North America. Most of its customers are in Latin America, although it has recently built a significant customer base in the US and Canada.

SoFi buying Technisys is another step in transforming from a one-time lender into a full-fledged digital bank. The fintech giant started in 2011 as an alternative student loan provider but has since morphed into a full-grown personal finance company offering other services, including personal and home loans, investing, insurance, and credit cards.

SoFi’s next plan is transforming into a one-stop digital bank. To achieve that, it recently bought Golden Pacific Corp, a California-based community bank, and obtained a national bank charter. Now, it’s buying Technisys, which provides back-end software for banks. SoFi is essentially becoming a one-stop shop for digital banking services, both to individuals and other banks and fintech companies.

  • SoFi agreed to hand over 84 million shares to Technisys’ shareholders, worth $1.1bn based on their volume-weighted average price 20 days leading up to the agreement, or about 10% of SoFi’s outstanding shares. However, it appears that investors weren’t happy with such significant dilution; SoFi’s shares fell nearly 10% on Tuesday after announcing the acquisition.


  • In a statement to investors, SoFi said it expects Technisys to add between $500mn-$800mn in revenue through year-end 2025.


  • SoFi expects the acquisition to close in this year’s second quarter. Technisys will operate as an independent SoFi subsidiary once the deal closes, according to a press statement.

Technisys is SoFi’s second-biggest acquisition since inception. The first is Galileo, a banking API platform that SoFi paid $1.2bn in cash and shares to buy in 2020. Technisys is, however, SoFi’s biggest acquisition since going public through a merger with a special-purpose acquisition company (SPAC) last year June.

SoFi’s transformation into a one-stop financial shop is the brainchild of CEO Anthony Noto. He took over the leadership role in 2018 from SoFi co-founder Mike Cagney under tumultuous circumstances. Before joining SoFi, Noto was Chief Operating Officer (COO) at social media giant Twitter.


  • SoFi’s stock (NASDAQ: SOFI) fell 9.9% on Tuesday. The company has a current market value of $8.3bn.

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