US online personal finance company Social Finance (SoFi) has agreed to acquire the parent of online brokerage firm 8 Securities in a move to foray into Hong Kong.
Financial terms of the deal were not disclosed.
The acquisition marks SoFi’s first entry into international market.
8 Securities was founded in 2012 with an objective to offer “simple, transparent and affordable” mobile investing solutions. It was established by Mathias Helleu and Mikaal Abdulla, who had previously built electronic trading platform provider E*TRADE’s international business in 15 countries.
8 Securities is claimed to have tens of thousands of customers across more than 50 countries. The online brokerage company is said to have raised more than $60m in venture capital.
The company’s co-founders Mathias Helleu and Mikaal Abdulla said: “We began our discussions with SoFi last year. SoFi’s commitment to enter Hong Kong during this challenging time is a big vote of confidence in 8 Securities and our city.
“SoFi brings Hong Kong a much-needed and fresh alternative to the current banks and brokers that never seem to evolve.”
SoFi said that by localising its brand in Hong Kong, it will continue to serve existing 8 Securities’ customers apart from expanding to an increasing member base.
8 Securities platform to be rebranded as SoFi
The closing of the acquisition will be subject to customary closing conditions. Following the closing of the deal, the 8 Securities platform will be rebranded as SoFi and will be available to residents in Hong Kong, in compliance with all applicable laws and regulations.
SoFi has also launched SoFi Invest in Hong Kong, which is said to be a comprehensive investing platform that provides access to brokerage, automated investing, and ETFs, all within its app ecosystem.
SoFi CEO Anthony Noto said: “We underwent an extensive evaluation process when considering our first international market, and it was clear that Hong Kong, a financial capital of Asia, is ripe for innovation and a launching pad for further expansion in both product and geography.
“Leveraging the learnings from the SoFi Invest platform in the U.S., SoFi can meet the needs of both experienced and novice investors alike in Hong Kong, all in support of our overall efforts to make headway on our mission to help people get their money right.”
Earlier this month, SoFi signed a deal to acquire Galileo Financial Technologies, a US-based financial services API and payments platform for $1.2bn.
