AUSTIN, Texas--(BUSINESS WIRE)--Q2 Holdings, Inc. (NYSE: QTWO), a provider of secure, cloud-based virtual banking solutions, today announced the acquisition of Des Moines, Iowa-based Social Money, a financial services software company that offers a modern, cloud-based platform that assists financial institutions in their direct digital strategies, best represented in their award-winning SmartyPig product. The addition of Social Money marks Q2’s second acquisition in 2015, and further fuels its development of secure banking platform solutions for community financial institutions across the country. Q2 acquired all of the outstanding interests of Social Money in exchange for $10.6 million cash payable at closing, subject to a customary working capital adjustment.
“Social Money’s technology portfolio and expertise make this a strategic acquisition that will help Q2’s customers expand their reach, grow market share and engage account holders,” said Matt Flake, president and CEO of Q2. “The digital banking experience matters when it comes to reaching millennials and retaining existing account holders. We are committed to providing community financial institutions innovative technology specifically designed for the increasingly digital modern consumer, and I believe the addition of Social Money will help us do just that.”
The acquisition of Social Money will provide Q2 with additional expertise in the direct-to-digital arena, a critical area for Q2’s customer base where consumers are increasingly more digital and branchless in their banking habits. Social Money creates new ways for financial institutions to address this consumer base while driving down costs and using the resulting savings to provide competitive product offerings.
“The Q2 research and development team is excited to welcome new team members and work with Social Money’s stellar portfolio of technology,” said Adam Anderson, CTO of Q2. “Today’s acquisition allows us to continue to empower community banks and credit unions to easily establish direct-to-digital capabilities in the future.”
Social Money will continue its relationship with existing clients while working directly within Q2’s research and development team to continue to establish innovative offerings for its digital banking channels. Q2 is evaluating the integration of Social Money’s portfolio, and plans to begin offering a rebranded suite of Social Money technologies to its customer base starting in 2016.
About Q2 Holdings, Inc.:
Q2 Holdings, Inc. (Q2) is a leading provider of secure, cloud-based virtual banking solutions headquartered in Austin, Texas. Q2 enables regional and community financial institutions, or RCFIs, to deliver a robust suite of integrated virtual banking services and engage more effectively with their retail and commercial account holders who expect to bank anytime, anywhere and on any device. Q2 solutions are often the most frequent point of interaction between its RCFI customers and their account holders. As such, Q2 purpose-built its solutions to deliver a compelling, consistent user experience across digital channels and drive the success of its customers by extending their local brands, enabling improved account holder retention and creating incremental sales opportunities. For more information about Q2, please visit www.q2ebanking.com.
About Social Money:
Social Money is a financial services technology company creating innovative products that help consumers and its clients save. The company’s products are centered on proprietary technology that enables cost-effective digital deposit enablement and engagement. For more information, visit www.socialmoney.com.
Forward-looking Statements:
This press release contains forward-looking statements, including statements about the ability of Social Money’s products to integrate with Q2’s solutions to successfully provide direct digital banking solutions; market acceptance of the Social Money digital banking solutions; the ability of Q2 to advance its product offerings together with Social Money; and the ability to cross-market Q2 and Social Money’s products. The forward-looking statements contained in this press release are based upon Q2’s current plans, estimates and expectations and are not a representation that such plans, estimates or expectations will be achieved. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) risks related to our ability to successfully integrate Social Money and its technology and personnel; (b) risks related to the execution of our plans, strategies and forecasts, including with respect to our digital banking capabilities and offerings; (c) risks related to the demand for these offerings; (d) risks related to our expectations with respect to the business of Social Money after completion of the transaction and our ability to realize additional opportunities for growth and innovation; and (e) other risks and potential factors that could affect our business and financial results identified in Q2’s filings with the Securities and Exchange Commission. These filings are available on the SEC Filings section of the Investor Relations section of Q2’s website at http://investors.q2ebanking.com/. These forward-looking statements represent Q2’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Q2 disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
