SoFi, a personal finance platform, announced on Tuesday the acquisition of Galileo, a digital payments company, in a $1.2 billion deal.

According to CNBC, the deal involved $875 million in company stocks, $250 million in shelter financing debt, and $75 million in cash payments.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Launched in 2000, Galileo connects banks with credit card processors using its API technology. Prior to the acquisition deal, SoFi was also a client of the Salt Lake City-based company.

Galileo also services SoFi’s direct competition, including Robinhood, Chime, Monzo, and Revolut.

Expanding financial offerings

SoFi was established as a student loan refinancing platform and now offers an array of financial products, including a digital currency trading platform.

With the acquisition deal, SoFi is aiming to leverage Galileo’s API technology, thus expanding its financial services offerings.

“One of the many reasons we’re thrilled to add the Galileo team is that it gives us the ability to better serve our members through their best-in-class API technology, furthering our goal to provide 24/7 access to critical financial services,” the announcement stated.

“Additionally, Galileo’s wide penetration, underpinning the global fintech space, places us in a critical role in reinventing and optimizing how digital finance is done today.”

The company also clarified that despite the billion-dollar acquisition, Galileo will continue to work independently and will benefit from the improvements to SoFi’s economics and infrastructure.

“Together with Galileo, we will partner to build on our companies’ strengths to drive even greater financial technology innovation, making those products and services available to both current and future partners,” Anthony Noto, CEO of SoFi, said.

“We’re excited to work with SoFi to build on the services that have made Galileo the leading supplier of infrastructure services to leading financial, technology, and fintech companies,” Clay Wilkes, CEO of Galileo, added. “With the help of SoFi, we intend to continue to grow with and support all of our existing clients and the product roadmaps that they have defined.”