Marqeta (NASDAQ: MQ) has announced the acquisition of Power Finance, a credit card management platform. Marqeta said in a public statement that it aims to boost its capabilities and leadership in the business of modern card issuing. Marqeta said the purchase is expected to close during the first quarter of 2023.
The deal includes $223 million 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 company was founded in early 2021 by CEO Randy Fernando and CFO Andrew Dust. Power Finance is a startup that raised a seed round in late 2022. At that time, Power Finance received $16.1 in funding along with a $300 million credit facility. The backing came from Anthemis and Fin Capital, along with other well-known VCs. The terms of the deal were not disclosed.
The combination of the two Fintechs is predicted to provide Marqeta customers with an improved tool kit to launch a range of credit products and features. Marqeta said it would be combing Power Finance”s “next generation rewards engine” with Marqeta’s own rewards system.
Marqeta said it expects to use the acquisition of Power Finance to significantly accelerate the capabilities offered in its credit product.
Fernando said that by becoming a part of Marqeta, they will now have the ability now to bring innovation to a much larger market at a global scale.
Newly appointed Marqeta CEO Simon Khalaf said they examined multiple potential acquisitions and it became clear that “Power would strengthen Marqeta’s platform with a best-in-class tech stack for credit card program management.”
Shares in Marqeta were little changed in early trading.