Marqeta names new CEO, makes $275m deal
Card issuer Marqeta will buy cloud-based credit card program management platform Power Finance in a $275 million deal expected to close in the first quarter, the company said Monday.
The acquisition – Marqeta’s first – comes a day before Simon Khalaf, the company’s former chief product officer, takes over as Marqeta’s CEO. The company announced the move on Thursday.
“We are delighted to welcome the Power team and product Market” Khalaf said Monday. “We are already seeing significant demand for differentiated credit products from companies looking to innovate in this space that are being held back by the limitations of legacy technology.”
Power Finance was founded in 2021 by CEO Randy Fernando and CFO Andrew Dust. Fernando joins Market with the acquisition, leading product management of the company’s credit card platform.
About $52 million of the purchase price is subject to an unspecified milestone within the next 12 months, Marqeta said. One-third of the remaining $223 million is paid over two years, subject to certain conditions.
“We have thoroughly investigated possible acquisitions in order to establish faster Markets leadership in the modern credit area,” Khalaf so. “It became clear to us that Power would strengthen Markets platform with a best-in-class technology stack for credit card program management.”
Outgoing CEO Jason Gardner will transition to the role of executive chairman on January 31 as planned.
“I am humbled by the opportunity to build on Jason’s vision for modern card issuance and continue to redefine what cards can do for leading innovators globally,” Khalaf said Thursday. “I believe we have the recipe in place to unlock the next level of growth and scale for Market.”
Khalaf has made waves in the company in his short time, having taken on leadership of its go-to-market arm in August. He led the launch of a Marqeta for Banking in October, a portfolio of seven banking products that marked the largest ever product expansion.
His more than 30-year tech career has seen him serve as CEO four times, most recently at mobile app analytics platform Fluffy, which was acquired by Yahoo in 2014 for over $200 million.
Khalafs diverse management experience, together with the “strong customer orientation and product vision he has shown in his time Market so far and his ability to build good teams makes him the right person to lead Market into the next chapter,” Gardner said.
Next to Khalaf, Todd Pollack, a former Google executive and chief commercial officer at Ancestry, was hired to become Marqeta’s chief revenue officer.
“There is a huge opportunity ahead of us to enable the brands we serve with our innovative, flexible platform and increase the adoption of digital payments globally,” Khalaf said.
