The purchase price includes about $9.8m set aside as a retention pool for key employees.
Green Dot said the deal will give the company improved customer acquisition and retention of its current prepaid debit card products, drive the adoption of new banking and payment products stargeted to new segments of consumers.
Following the completion of the transaction, Loopt’s current headquarters in Mountain View, California, US will become the new Silicon Valley hub for Green Dot’s mobile technology and product development team.
Green Dot anticipates that this transaction will result in $14m of incremental operating expenses during the remainder of this year which will reduce its previously guided 2012 full year adjusted EBITDA accordingly.
The transaction, which is subject to regulatory approvals and other closing conditions, is expected to close by the end of the first quarter of 2012.
