SoFi signs Agreement to Acquire Galileo Financial Technologies


SoFi, a San Francisco based online personal finance company, is now all set to acquire the Galileo Financial Technologies.

SoFi will pay around $1.2 billion to acquire Galileo, in both the stocks and cash deal, notes the announcement.

Galileo is a payment processing solutions platform with Artificial Intelligence based fraud detection. The solution can process the massive amounts of transaction data to identify previously undetectable fraud patterns and further lowering fraud losses. Galileo Financial Technologies previously raised a total of $77M in funding over 1 round, according to CrunchBase.

SoFi is a finance company that provides a range of lending and wealth management services.
The company, as of now, caters to the early-stage professionals and offers both the variable and fixed-rate parent, personal, and MBA loans, mortgage refinancing, and much more.

Executive Opinion

Anthony Noto, CEO of SoFi, said, "SoFi has established itself as a leader in the fintech sector, providing our more than one million members a full array of financial products to help them get their money right. The response by our members to our innovation across borrowing, saving, spending, and investing has motivated us to think bigger, bolder, and more expansively given the insatiable consumer appetite for financial services innovation. 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."

Clay Wilkes, CEO of Galileo, said, "SoFi has built a very strong diversified financial services company focusing on a full suite of financial services. These are products that many of our leading fintech clients are asking for. Distributing products through our enterprise-class API is the vision behind this combination. I think it’s very powerful. We’re excited to work with SoFi to build on the services that have made Galileo the leading supplier of infrastructure services to leading financial, technology, and fintech companies. With the help of SoFi, we intend to continue to grow with and support all of our existing clients and the product roadmaps that they have defined."

SoFi's and Galileo Financial Technologies

SoFi Money is already integrated with the Galileo payment platform, which includes the events and account API functionalities. Galilieo brings the capabilities and best-in-class technology ecosystem to Sofi. This will allow Sofi to move from physical-only to a multi-channel digital and physical platform, notes the announcement.

Additionally, the company strengthens its capabilities and will extend the reach of its products to other Galileo partners in the US and international markets, while offering scale to its existing infrastructure.

Galileo is the second acquisition SoFi has done and its biggest one. Its last buy was ZenBanx, which it acquired for the $100 million in the year 2017.

PC: Pablo, Unsplash

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Udit Agarwal Opinions expressed by techsutram contributors are their own. More details

Udit Agarwal is a Digital Marketer and a Content Marketing Specialist, He enjoys technical as well as non-technical writing. His passion and urge for gaining new insights on gadgets, smartphones and technology has led him to Techsutram. He quenches his thirst for technology through his action oriented writing skills and a profound ability to stay up to date with latest industry trends.

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