Marqeta To Scoop Credit Card Program Management Platform Power Finance For $275M, Including Earnout - Marqeta (NASDAQ:MQ)

Global modern card issuing platform Marqeta, Inc MQ agreed to acquire credit card program management platform Power Finance, Inc for $223 million in cash plus $52 million in earnout.
Marqeta CEO Simon Khalaf said, "We thoroughly examined possible 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 tech stack for credit card program management."
Power's cloud-native platform offers credit card program management services for companies creating new credit card programs. The company was founded in early 2021 by fintech veterans CEO Randy Fernando and CFO Andrew Dust.
As part of this acquisition, Power Finance CEO Randy Fernando will now lead the product management of Marqeta's credit card platform.
The deal will likely close in the first quarter of 2023. Marqeta held $1.65 billion in cash and equivalents as of Sept. 30, 2022.
Price Action: MQ shares traded lower by 2.4% at $6.59 on the last check Monday.