Marqeta acquires Power Finance for $223M cash plus $52M milestone

Marqeta announced that it has entered into an agreement to acquire credit card program management platform Power Finance .The deal is expected to close in the first quarter of 2023, subject to the satisfaction of customary closing conditions. The combination of Marqeta and Power’s platforms allows Marqeta to directly offer its customers the tools they need to create innovative credit products that meet the changing demands and expectations for credit cards from consumers and businesses. Power and Marqeta were founded on similar core product principles, with a modern and easily scalable platform built with today’s developer in mind. This acquisition will allow Marqeta customers to launch a wide range of credit products and constructs. It will combine Power’s next generation rewards engine with Marqeta’s own rewards innovations, and add in Power’s data science toolbox and ability to embed experiences inside existing mobile and web applications. Marqeta expects to use the acquisition of Power to significantly accelerate the capabilities offered in its credit product. The purchase price, which is subject to customary adjustments, consists of $223M in cash, approximately one-third of which is payable over a two-year period subject to certain conditions, plus $52M in cash subject to a milestone that is expected to be achieved within the next 12 months.