Marqeta makes first M&A foray with $275m Power Finance deal
Global card issuing platform Marqeta has acquired Power Finance, a credit card management platform, in a $275 million all-cash deal that looks to strengthen Marqeta’s credit and card issuing capabilities.
Marqeta acquires Power Finance
The acquisition, Marqeta’s first, is expected to close in Q1 2023 and will comprise of $223 million in cash, around a third of which is payable over a two-year period.
An additional $52 million in cash is subject to a milestone expected to be achieved within the next 12 months.
Marqeta CEO Simon Khalaf says there is “considerable demand” from companies looking to innovate in the credit space, but which are held back by legacy technology.
Looking at potential acquisitions, “it became clear to us that Power would strengthen Marqeta’s platform with a best-in-class tech stack for credit card programme management”, Khalaf adds.
Founded in early 2021 in New York, Power raised $16.1 million in a Seed funding round last September and also secured a $300 million credit facility.
The acquisition will allow Marqeta to offer customers the ability to create and launch a range of credit solutions, “significantly” boosting the firm’s credit product capabilities, it says.
Power Finance CEO and co-founder Randy Fernando comments: “At Power, we built a full-stack, cloud-native credit card issuance platform, and by becoming a part of Marqeta we have the ability now to bring this innovation to a much larger market at global scale.”
Marqeta filed for an IPO in early 2021 and debuted on the Nasdaq stock exchange in June that year.
