Cloud-based digital banking solutions provider Alkami Technology, Inc. (ALKT) recently announced that it has completed the acquisition of digital account opening and loan origination provider MK Decisioning Systems, LLC.
Following the news, shares of the company declined 3.4% to close at $27.15 in extended trade on Monday.
The consideration for the transaction consists of $20 million of proceeds at close and an opportunity for MK Decisioning to earn up to an additional $25 million in consideration after achieving certain milestones in 2022 and 2023.
With this acquisition, Alkami is expected to fortify its presence in the digital banking space further and expands its total addressable market.
The CEO of Alkami, Mike Hansen, said, “Alkami understands just how critical our digital banking platform is to our clients’ continued success in meeting the needs of their users. To that end, MK’s solutions unlock digital account opening and loan origination innovations on a single, cloud-based platform that delivers capabilities previously reserved for the largest technology companies, megabanks and fintechs in the market.” (See Alkami stock chart on TipRanks)
Last month, Needham analyst Mayank Tandon reiterated a Buy rating on the stock with a price target of $50, which implies upside potential of 84.2% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average Alkami price target of $45 implies that the stock has upside potential of 65.8% from current levels. Shares have declined about 36.9% over the past year.