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Marqeta Inc.
MQ,
plans to acquire credit-card program-management company Power Finance for at least $223 million in cash, the company announced Monday. “We already see considerable demand for differentiated credit products from companies looking to innovate in this space who are held back by the constraints of legacy technology,” Simon Khalaf, Marqeta’s incoming chief executive, said in a release. Marqeta “thoroughly examined possible acquisitions to more quickly establish Marqeta’s leadership in the modern credit space” and expects that Power Finance will “strengthen” its existing efforts. The deal is expected to close in the first quarter of 2023. Marqeta, which makes technology that enables card issuing, noted that the acquisition price consists of $223 million in cash, about one third of which is payable over a two-year period. There is an additional $52 million milestone payment subject to conditions expected to be achieved in the next 12 months. Shares of Marqeta were off nearly 2% in premarket trading Monday.
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