Oportun completes acquisition of Digit, a neobanking company and platform

Oportun completes acquisition of Digit, a neobanking company and platform

By Edlyn Cardoza

Oportun, a mission-driven FinTech company, recently announced 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 with 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 based on a price of $24.477 per share of the company’s common stock, determined at the time of signing pursuant to the definitive agreement between the parties. The Company 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.

Recently, IBS Intelligence reported that Oportun, an A.I.-driven FinTech company, announced it closed a $150 million credit facility secured by credit card receivables arising under its Oportun Visa Credit Card issued by WebBank. WebBank is the lender under the new facility, which carries a two-year revolving term and replaces Oportun’s existing retention facility. Oportun will use the new facility to meet the continuing demand and growth of the credit card program.