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TransactionWatch - Week of April 6th - April 10th

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This Week’s M&A Overview

M&A activity remained soft within the payments industry this week as the COVID-19 pandemic continued to impact the market. Several acquisitions have occurred throughout the week, signifying the ongoing adjustments certain firms are making to ensure profitability in the long run even during the current volatile economic environment. For instance, SoFi announced their intensions to acquire Galileo Financial Technologies in a stock and cash deal totaling approximately $1.2 billion. This acquisition suggests SoFi is focusing on the development of their consumer financial offerings as a large influx in individuals around the world seek venues for loan assistance due to economic effects from COVID-19.

In certain cases, ongoing terms are being renegotiated and shifting towards establishing future performance goals to ensure buys are not over-valued at the time of the closure of the deal. This tactic helps firms alleviate some attributes of future risks while warranting their acquisition targets are receiving fair and competitive offers.