Cryptocurrency friendly finance company, Social Finance (SoFi) has agreed to acquire Galileo Digital payments firm. According to a press release on April 7, SoFi revealed that it has reached an agreement amounting to $1.2 billion to acquire Galileo Financial Technologies.
As per a report by CNBC, the payment of the deal comprises an initial $75 million in cash, further $875 million in stocks and a further $250 million financing Galileo payments service firm debts. Moreover, the CEO of SoFi, Anthony Noto, highlighted how the purchase of the digital payments service firm will impact the current market. He said:
“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.”
Moreover, the California-based crypto amiable financial company has seen a hike in the interest of its services since it unveiled free cryptocurrency trading on its SoFi Invest platform back in September last year.
SoFi to use Galileo Digital Payments firm to expand presence in the United States
Furthermore, Social Finance plans to use Galileo Digital Payments firm to widen the reach of its products and services to Galileo users in the U.S. and overseas. SoFi is predicted to have a lot of activities at this difficult time of corona pandemic. With Financial institutions set to be or shut down amid the COVID-19 outbreak, many people around the world are opting for digital payments solutions to sort out their financial needs.
Indeed, the deal to buy out the Lake City-based Galileo digital payments firm; comes as a huge surprise as both firms have been experiencing difficulties of late. For instance, Galileo, which has been in existence for 20 years; is recovering from a huge technical fault late last year. The fault resulted in most of its clients such as Chime; opting to isolate its clients from the platform for a full day.
On the other hand, SoFi has been left with a rebuilding task; due to its founder, Mark Cagney stepping down back in 2018. In addition, SoFi has struggled to expand its services from its key product of refinancing student loans, to other services like digital currencies, loans and banking.
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