Green Dot Corporation to acquire Loopt

Looking to expand mobile technology solutions

Banking and payment solution provider Green Dot is set to acquire mobile marketing and geo-location app developer Loopt in a deal due to be sealed by the end of the first quarter (view press release). Through the acquisition of Loopt, Green Dot is looking to gain strategic benefits to improve customer acquisition and retention of its prepaid debit cards, drive the adoption of new banking and payment products and become a leader in mobile wallet, rewards and payment solutions. Green Dot will also acquire certain Loopt patents relating to real time location based mobile marketing and intends to leverage the solutions to expand its mobile business opportunities.

Steve Streit, Chairman and CEO of Green Dot, believes that “when Loopt’s assets are layered into Green Dot’s platform, a significant opportunity will emerge for Green Dot to become a large-scale player in mobile technology solutions at the retail point of sale.”

On completion of the deal, Loopt’s headquarters in Mountain View, California will become Green Dot’s mobile technology and product development hub. Green Dot will pay a total of $43.5 million for the company, including $9.8 million to be set aside in a retention pool for senior Loopt employees.

Further details about the acquisition and Green Dots mobile strategy will be announced on April 26th.

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