Salt Lake City-based personal finance giant SoFi just announced it plans to acquire financial technology firm Galileo.
This will become a $1.2 billion in a cash-and-stock deal.
Galileo was founded in 2000 and was a very early player in the world of digital payment processes. It has pioneered advances in application program interfaces or APIs.
For example, it provides the API infrastructure layer for many of the world’s top fintech startups like Chime, Robinhood, Monzo, Revolut, Transferwise, and Varo.
The company’s APIs are used by these fintechs for everything from opening and verifying new financial accounts, issuing and processing payment cards.
According to data, it processed over $53 billion of annualized payments volume in March.
SoFi started its business as a student loan financing outfit. Since then it has been gradually expanding its range of services. In 2017 it even bought mobile banking outfit Zenbanx.
Most importantly, last year it teamed up with Coinbase as it moved to add the ability to trade cryptocurrencies within the overall SoFi Invest platform.
SoFi CEO Anthony Noto said: “SoFi has established itself as a leader in the fintech sector, providing our more than 1 million members a full array of financial products to help them get their money right”
“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.”
Galileo has about 250 employees and except Salt Lake City it has offices in San Francisco and New York City. The pending acquisition transaction is subject to regulatory approvals and other customary closing conditions.