Green Dot Corp. is set to acquire Loopt Inc., a California-based mobile technology company, for $43.4 million in cash.
The purchase price includes roughly $9.8 million set aside specifically to retain key Loopt employees.
Green Dot CEO Steve Streit was clear in explaining the reasoning behind his company’s investment.
"We believe that mobile phones have the potential to change the way people interact with their bank, control their money and pay for goods and services,” Streit said in an official release. "Loopt has innovative mobile technology, market leading mobile programming capabilities and compelling intellectual property.
“Meanwhile, Green Dot has a large customer base, a robust enterprise-level financial services infrastructure and retail point-of-sale financial transaction capabilities deployed at major retailers nationwide. When Loopt’s assets are layered into Green Dot’s platform, we believe that a significant opportunity emerges for Green Dot to become a large-scale player in mobile technology solutions at the retail point of sale," Streit said.
“It’s been exhilarating to see mobile become such a critical part of our collective daily lives,” added Loopt CEO and co-founder Sam Altman. “As this technology truly reaches the masses, I believe we're going to see the banking and payments industry fundamentally reshaped in a way that’s better for everyone.
After the acquisition closes, Loopt will remain in Mountain View, with Green Dot moving its mobile technology and product development team to Loopt’s current headquarters.