Green Dot has signed an agreement to purchase UniRush and its operating businesses RushCard and Rapid! PayCard in a transaction valued at approximately $147m.
Additionally, Green Dot will pay a minimum $4m annual earn-out payment for five years after completion of takeover, thereby bringing the total cost of the acquisition to $167m.
RushCard operates as an online direct-to-consumer general purpose reloadable prepaid card provider, whereas Rapid! PayCard functions as a corporate payroll card provider.
The two programmes of UniRush, which includes RushCard general purpose reloadable prepaid card programme and the Rapid! PayCard corporate payroll card programme, are expected to add over 750,000 new active cardholders to Green Dot’s vertically integrated FinTech banking platform.
As a direct-to-consumer online business, after the completion of acquisition, the RushCard programme will be consolidated into the ‘Green Dot Direct’ division that houses GreenDot.com, GreenDot.com/Platinum Secured Visa Credit Card, WalmartMoneyCard.com, AccountNow.com, AchieveCard.com, GoBank.com and ReadyDebit.com.
Green Dot founder and CEO Said Steve Streit said: “As one of the largest and most successful FinTech banking franchises in America, Green Dot has proven its ability to efficiently integrate highly accretive acquisitions.
“We believe the acquisition of UniRush, LLC, including the RushCard business and the Rapid! PayCard corporate payroll card business will be a strategic and financial success in both the near and long term.
“I am delighted to continue my long relationship with Russell and am eager to partner with the UniRush team to serve the customers we both care so much about while focusing on generating a strong economic return for Green Dot investors.”
Subject to customary closing conditions, the transaction is likely to be concluded before the end of first quarter.