Goldman Sachs has agreed to acquire Folio Financial, a brokerage, custodian, and financial technology company headquartered in McLean, Virginia.
The two parties have been working on the deal since last year. Financial terms of the transaction were not revealed.
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Folio Financial CEO Steven Wallman believes that the takeover will strengthen the innovation capabilities of the fintech firm and also add scale to the firm.
The execution, clearing, and custody area will be especially benefitted, he noted.
Wallman stated: “Goldman Sachs and Folio share a commitment to serving the needs of our clients and to expanding the scope of sustainable, responsible, and impact investing.
“The combination of Folio’s patented technologies and services with Goldman Sachs’ investment solutions and access to global resources will create material value for our clients.”
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By GlobalDataThe takeover of Folio, which has a staff headcount of around 160 and $11bn in assets under custody, awaits regulatory nod.
Deal completion is anticipated in the third quarter of this year.
The year 2019 was particularly busy for Goldman Sachs, with the bank being in news for its acquisition of United Capital Financial Partners in a $750m deal.
Last August, Goldman Sachs Asset Management took a passive, non-voting minority equity stake in Canada’s Slate Asset Management.
