Q2 is buying up Silicon Prairie.
Q2 Holdings, the parent of bank software provider Q2, announced Tuesday it had acquired Des Moines, Iowa-based Social Money, best known for its SmartyPig savings product. In July, Q2 acquired Lincoln, Neb.-based Centrix, a maker of fraud detection technologies, for about $20 million.
In other words, fintech consolidation continues at a healthy clip. This week also saw the completion of perhaps the biggest fintech deal ever, Fidelity National’s $5.1 billion acquisition of Sungard.
According to Q2, the company “acquired all of the outstanding interests of Social Money in exchange for $10.6 million cash payable at closing, subject to a customary working capital adjustment.” Q2, a public company, has a market capitalization of approximately $1.1 billion and ended Q3 with about $113 million in cash, according to its most recent earnings call.
Social Money appeared to have enjoyed a strong 2015, adding Sallie Mae as a high-profile customer, as well as striking a deal with the Gates Foundation to bring its products to India.
Social Money offers a realtime core product called CorePro, as well as its SmartyPig savings account, a goal-based saving account. Both products can be branded by banks, as well as other companies that may wish to offer these products. Q2 helps community institutions offer digital banking services to compete with larger rivals. Social Money will soon become part of the research and development team Austin, Texas-based Q2’s virtual banking platform. Social Money’s 12 employees will remain in Des Moines, according to the Des Moines Register.
“Today’s acquisition allows us to continue to empower community banks and credit unions to easily establish direct-to-digital capabilities in the future,” said Q2 CTO Adam Anderson.
Social Money’s current relationships with clients will continue, at for now, according to the press release. Q2 is currently evaluating how Social Money’s portfolio could fit into its product set, and plans to offer “a rebranded suite of Social Money technologies” to its customers next year.Like This Post