Marqeta (NASDAQ: MQ), the global modern card issuing platform, announced today that it has entered into an agreement to acquire credit card program management platform Power Finance, Inc. (“Power”). The deal is expected to close in the first quarter of 2023, subject to the satisfaction of customary closing conditions.

“We’re thrilled to welcome the Power team and product to Marqeta. We already see considerable demand for differentiated credit products from companies looking to innovate in this space who are held back by the constraints of legacy technology,” said Simon Khalaf, incoming CEO at Marqeta. “We thoroughly examined possible acquisitions to more quickly establish Marqeta’s leadership in the modern credit space. It became clear to us that Power would strengthen Marqeta’s platform with a best-in-class tech stack for credit card program management.”

Power’s cloud-native platform offers credit card program management services for companies creating new credit card programs. The company was founded in early 2021 by fintech veterans CEO Randy Fernando and CFO Andrew Dust. Power’s investors include Anthemis, Fin Capital, CRV, Dash Fund and Restive Ventures. As part of this acquisition, Power Finance CEO Randy Fernando will now lead the product management of Marqeta’s credit card platform.

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.

“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,” said Randy Fernando, co-founder and CEO at Power Finance. “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.”

The purchase price, which is subject to customary adjustments, consists of $223 million in cash, approximately one-third of which is payable over a two-year period subject to certain conditions, plus $52 million in cash subject to a milestone that is expected to be achieved within the next 12 months.

About Marqeta

Marqeta’s modern card issuing platform empowers its customers to create customized and innovative payment cards. Marqeta’s platform, powered by open APIs, gives its customers the ability to build more configurable and flexible payment experiences, accelerating product development and democratizing access to card issuing technology. Its modern architecture provides instant access to highly scalable, cloud-based payment infrastructure that enables customers to launch and manage their own card programs, issue cards and authorize and settle transactions. Marqeta is headquartered in Oakland, California and is certified to operate in 40 countries globally. For more information, visit www.marqeta.com, Twitter and LinkedIn.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, quotations and statements relating to changing consumer preferences; increasing consumer adoption of certain digital payment methods, products, and solutions; which payment, banking, and financial services products and solutions may succeed; technological and market trends; Marqeta’s business; Marqeta’s products and services; and statements made by Marqeta’s senior leadership. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: the expected timing and likelihood of completion of the proposed transaction, including the timing, receipt and terms and conditions of the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the acquisition; the inability to consummate the proposed transaction due to the failure to satisfy other conditions to complete the proposed transaction; risks that the proposed transaction disrupts current plans and operations of Marqeta; the ability to identify and recognize the anticipated benefits of the proposed transaction; and the ability of Marqeta to successfully integrate the acquisition to businesses and related operations; any factors creating issues with changes in domestic business, market, financial, political and legal conditions; the effect of and uncertainties related to the global COVID-19 pandemic on U.S. and global economies and demand for Marqeta’s services and products; the uncertainties and direct and indirect effects of the significant military action against Ukraine launched by Russia, including threats of attacks against U.S. financial institutions as retaliation against financial institutions for sanctions imposed against Russia; the risk that Marqeta is unable to further attract and grow its customer base; the risk that consumers will not perceive the benefits of Marqeta’s products and services, including digital payment and banking products and services; the risk that Marqeta's products and services do not operate as intended, including digital payment and banking products and services; the risk that Marqeta’s products and solutions will not achieve the expected market acceptance, including digital payment and banking products and services; and the risk that competition could reduce expected demand for Marqeta’s products and services, including digital payment and banking products and services. The ability of Marqeta to achieve the goals for the proposed transaction may also be affected by its ability to manage the factors identified above. Detailed information about these risks and other factors that could potentially affect Marqeta’s business, financial condition and results of operations are included in the “Risk Factors” disclosed in Marqeta's Annual Report on Form 10-K for the year ended December 31, 2021, as such risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC, available at www.sec.gov and Marqeta’s website at http://investors.marqeta.com. The forward-looking statements in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update any forward-looking statements, except as required by law.