Marqeta (NASDAQ: MQ), an Oakland, CA-based modern card issuing platform, entered into an agreement to acquire credit card program management platform Power Finance, Inc.
The deal is expected to close in the first quarter of 2023, subject to the satisfaction of customary closing conditions.
The purchase price, which is subject to customary adjustments, consists of $223M in cash, approximately one-third of which is payable over a two-year period subject to certain conditions, plus $52 million in cash subject to a milestone that is expected to be achieved within the next 12 months.
The acquisition of Power Finance strengthens Marqeta’s credit capabilities and enhances its leadership in modern card issuing across all card types. This acquisition will allow Marqeta customers to launch a wide range of credit products and constructs. It will combine Power’s rewards engine with Marqeta’s own rewards innovations, and add in Power’s data science toolbox and ability to embed experiences inside existing mobile and web applications.
Founded in early 2021 by fintech veterans CEO Randy Fernando and CFO Andrew Dust, Power provides a cloud-native platform that offers credit card program management services for companies creating new credit card programs. The company’s investors include Anthemis, Fin Capital, CRV, Dash Fund and Restive Ventures. As part of this acquisition, Power Finance CEO Randy Fernando will now lead the product management of Marqeta’s credit card platform.
FinSMEs
30/01/2023