[Techtaffy Newsdesk]
Green Dot, a provider of low-cost banking and payment solutions, has entered into a definitive agreement to acquire Loopt of Mountain View, California. Green Dot will pay total consideration of $43.4 million in cash for the company, which includes approximately $9.8 million to be set aside as a retention pool for key Loopt employees.
The acquisition of Loopt will provide Green Dot with a number of key strategic benefits, says the company, including improving customer acquisition and retention of its current prepaid debit card products, and driving the adoption of new banking and payment products targeted to new segments of consumers, among other things. Besides, Loopt holds several mobile marketing patents which will be important strategic assets, adds Green Dot.
The transaction is expected to close by the end of the first quarter of 2012 and is subject to regulatory approvals and other closing conditions.
Upon closing of the transaction, Loopt’s current headquarters in Mountain View, California will become the new Silicon Valley hub for Green Dot’s mobile technology and product development team.