Power Finance, a fintech infrastructure startup, has been acquired by Marqeta.
According to TechCrunch, the digital card platform paid $223 million in cash for the startup, making it Marqeta’s first acquisition since its founding in 2010.
According to the outlet, approximately one-third of the purchase price is payable over a two-year period under undisclosed terms. Furthermore, if one unspecified milestone is met within the next 12 months, Marqeta will pay Power Finance an additional $52 million.
With the acquisition, Marqeta plans to launch “a wide range” of credit products and constructions for customers.
Following the close of the transaction, Power Finance Founder and CEO Randy Fernando will oversee the product management of Marqeta’s credit card platform.
“Companies like ours were made possible because of the path Marqeta blazed in modern card issuing, demonstrating the possibilities in payments with flexible and modern payment infrastructure,” Fernando shared in a statement, according to the outlet. “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.”