SoFi Is Buying Payments Company Galileo For $1.2 Billion

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SoFi, the San Francisco fintech company whose products range from student loans to cryptocurrency trading, is buying Salt Lake City payments firm Galileo for $1.2 billion in stock and cash

By buying Galileo, SoFi, led by CEO Anthony Noto, creates a new revenue stream of white-labeled financial services. It can help other companies launch financial products, and Galileo will remain an independent subsidiary with its founder Clay Wilkes, 59, staying on as CEO.

The timing for the deal is a surprise given the economic downturn caused by the coronavirus. Investors say many funding deals are on hold given the uncertain environment. Conversations between SoFi and Galileo began well before the outbreak, and this announcement indicates that fintech startup valuations haven’t yet been pushed down significantly by the recession. We may not start seeing that happen until this summer or fall, one fintech executive says. .

 

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SoFi Ridiculous they spent that much money on a company right now when they don’t forgive interest to their student loan holders. So selfish

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Interesting

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