Fintech: Southeast News

Fintech Southeast News curated each weekday for Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee

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Posted May 25, 2021

 

Green Dot, a prepaid card issuer that entered the tax refund processing business seven years ago, announced a $165 million acquisition Friday that would expand its presence in the tax segment.

The Pasadena, California-based company agreed to purchase the assets and operations of Republic Bank’s tax refund solutions business unit. The two companies expect the cash acquisition to close in the fourth quarter, they said in a press release.

Under the deal, Louisville, Kentucky-based Republic will provide transition services to Green Dot during 2022. The companies said that Green Dot plans to retain Republic employees who are primarily dedicated to the tax refund solutions segment, while other employees will stay at the Kentucky bank to manage remaining business lines within its Republic Processing Group.

{mprestriction ids="1,4,9"}The acquisition “presents unique opportunities for near- and long-term growth of our tax processing business,” Brian Schmidt, CEO of Green Dot’s Santa Barbara Tax Products Group, said in the press release.

Green Dot got into the tax refund processing business in 2014 with its $320 million acquisition of Santa Barbara. The unit offers a variety of tax-related financial products through a network of tax preparation providers.


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