Earlier on 7th April, in an official press release, SoFi announced that it has reached an agreement to acquire Galileo Financial Technologies for a reported fee of $1.2 billion.
As per sources closely following the matter, the payment is a three part payment consisting of $75 million in cash, $250 million in seller financing debt and $875 million in stock.
Speaking on the completion of the acqisition deal, Anthony Noto the CEO of SoFi gave a statement clarifying as to how this deal will prosper in the ongoing market crysis situation:
“Along 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.”
Zero-fee crypto trading was launched on SoFI Invest back in September back in 2019 and since then the financial firm has seen a surge in its demands..
As per reports to acquisition of Galileo will be used by the firm based out of California to, “extend the reach of its products to other Galileo partners in the United States and international markets, while providing diversification and scale to SoFi’s existing infrastructure,” along with focussing on its fintech infrastructure.
Big time investors as well as individuals are opting for digital solutions similar to the ones offered by financial firms due to the Covid-19 Pandemic which has lead to several physical banks being closed down. All signs stating that SoFi will have its hands full as the year 2020 progresses.
In a statement regarding the deal Noto stated that the, “timing to take up this challenge is perfect as we are 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 all but on its way to further acceleration.”