SAN CARLOS, Calif., Dec. 22, 2021 (GLOBE NEWSWIRE) — Oportun, a mission-driven fintech company announced today that it has completed the acquisition of Digit, a neobanking platform that provides automated savings, investing, and banking tools. According to the company, the acquisition of Digit further expands its A.I. and digital capabilities to provide hardworking consumers a holistic offering built to address their financial needs.
“This is a transformational deal that positions Oportun for even more future success,” said Raul Vazquez, CEO of Oportun. “With this transaction, we are combining two mission-driven organizations with complementary services, capabilities, and member bases.”
Oportun acquired Digit for approximately $211.1 million, comprised of an aggregate of approximately $112.6 million in cash and approximately $98.5 million in Oportun common stock and/or restricted stock units to be settled in Oportun common stock on the basis of a price of $24.477 per share of Oportun common stock, determined at the time of signing pursuant to the definitive agreement between the parties. Oportun also closed a financing facility from Jefferies to finance the cash consideration.
Digit is a neobanking platform founded in 2013 that provides its 600,000 paying members with personalized savings, investing and banking tools. Digit members can keep and integrate their existing bank accounts into the platform, or they can make Digit their primary banking relationship by opening new accounts via Digit’s bank partner.
Enabled by A.I., Digit automatically sets aside funds for members by analyzing cash flow and recognizing how much can be saved and invested today, while remaining well within a member’s immediate financial means.
Details Regarding the Acquisition
Digit will operate as a business unit within Oportun and continue to be led by Digit founder and CEO, Ethan Bloch. All of Digit’s 100+ employees have joined Oportun and will continue their job functions.
J.P. Morgan served as exclusive financial advisor and Wilson Sonsini Goodrich & Rosati served as legal counsel to Oportun. Jefferies provided the financing facility. Goodwin Procter served as legal counsel to Digit. Financial Technology Partners served as exclusive strategic and financial advisor to Digit.
An investor presentation related to the acquisition is available here.
Additional details and information about the terms and conditions of the acquisition will be available in a current report on Form 8-K to be filed by Oportun with the Securities and Exchange Commission.
For more information about Oportun, visit www.oportun.com. For more information about Digit, visit www.digit.co.
About Oportun
Oportun (Nasdaq: OPRT) is a digital banking platform that uses A.I. to make financial health effortless for anyone. Oportun helps its 1.4 million members meet their daily borrowing, banking, savings, and investing needs. Since its inception, Oportun has provided more than $10 billion in responsible and affordable loans, and its members have set aside more than $7 billion for rainy days and other needs, saved more than $2 billion on interest and fees, and paid down more than $300 million in personal debt. In recognition of its responsibly designed products and mission to provide inclusive and affordable financial services that empower hardworking individuals to build a better future, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.
