SoFi plans takeovers after agreeing to go public through a SPAC merger at $8.7b valuation

Mike Cagney, co-founder and chief executive officer of Social Finance Inc (SoFi). Photo: Bloomberg

Social Finance Inc. is planning for takeovers after agreeing to go public in a merger with a blank-check company that values the upstart at around $8.7 billion.“We want to invest heavily in acquisitions and new growth vehicles,” Chief Executive Officer Anthony Noto said Thursday in an interview.

The online lender known as SoFi, which gained popularity by refinancing student loans, agreed to merge with Social Capital Hedosophia Holdings Corp. V, a special purpose acquisition company founded by former Facebook executive Chamath Palihapitiya. It marks the latest example of a growing trend in which closely held firms go public by merging with a SPAC.

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