Marqeta announces agreement to acquire Power Finance, Inc.
Marqeta (NASDAQ: MQ), the global modern card issuing platform, today announced that it has entered into an agreement to acquire credit card program management platform Power Finance, Inc. (“Power”). The agreement is expected to close in the first quarter of 2023, subject to the satisfaction of normal closing conditions.
“We are delighted to welcome the Power team and product to Marqeta. 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. said Simon Khalaf, incoming CEO of Marqeta. “We thoroughly researched potential acquisitions to more quickly establish Marqeta’s leadership in the modern credit space. It became clear to us that Power would strengthen Marqeta’s platform with a best-in-class credit card program management technology stack.”
Power’s cloud-based platform offers credit card program management services for companies creating new credit card programs. The company was founded in early 2021 by fintech veteran CEO Randy Fernando and CFO Andrew Dust. Power’s investors include Anthemis, Fin Capital, CRV, Dash Fund and Restive Ventures. As part of this acquisition, Power Finance CEO Randy Fernando will now lead the product management of Marqeta’s credit card platform.
The combination of Marqeta and Power’s platforms means that Marqeta can directly offer its customers the tools they need to create innovative credit products that meet the changing demands and expectations for credit cards from consumers and businesses. Power and Marqeta were founded on similar core product principles, with a modern and easily scalable platform built with today’s developer in mind. This acquisition will allow Marqeta’s clients to launch a wide range of credit products and structures. It will combine Power’s next-generation rewards engine with Marqeta’s own rewards innovations, adding to Power’s data science toolbox and ability to embed experiences into existing mobile and web applications. Marqeta expects to use the acquisition of Power to significantly accelerate the opportunities offered in the credit product.
“Companies like ours were made possible because of the path Marqeta blazed in modern card issuance, demonstrating the possibilities in payments with flexible and modern payment infrastructure,” said Randy Fernando, co-founder and CEO of Power Finance. “At Power, we built a full-stack, cloud-based credit card issuing platform, and by becoming part of Marqeta, we have the opportunity to bring this innovation to a much larger market on a global scale.”
The purchase price, which is subject to customary adjustments, consists of $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 expected to be achieved within the next 12 months.
