SoFi buys Galileo for $ 1.2 billion

SoFi, a US crypto-friendly company specializing in loan refinancing, has just acquired the payment specialist Galileo for an amount of $ 1.2 billion.

Founded in 2000 in Utah in the United States, Galileo uses API technology to connect banks to credit card providers. Its platform, which processed nearly $ 45 billion in transactions last month, offers a multitude of services and in particular makes it possible to detect fraud using AI.

We are delighted to announce today that we have signed an agreement to acquire Galileo, the powerful payment API and platform that powers not only our SoFi Money product, but also many other innovative fintech payment offerings around the world, ”said SoFi in a statement.

Galileo recently raised $ 77 million fromAccel Ventures and provides its solutions to several large neobanks and financial services companies such as Revolut, Monzo, Robinhood or TransferWise.

Discussions on the deal started before things got complicated due to the coronavirus, but they could have continued despite the current economic downturn, "said SoFi and Galileo executives on CNBC.

SoFi, valued at $ 4.8 billion, also plans to take advantage of Galileo to improve their own services.

The California fintech specializing in the refinancing of student loans also offers Bitcoin trading. Its co-founder, Mike Cagney, is also the founder of Figure Technologies, a very promising blockchain startup.