Pre-paid debit card issuer Green Dot Corp. (NYSE: GDOT) has announced the acquisition of privately held Loopt Inc. for an undisclosed price. The transaction is expected to close by the end of the first quarter, assuming all regulatory approvals are obtained and other conditions met. Green Dot provides pre-paid cards to Wal-Mart Stores Inc. (NYSE: WMT) and other major US retailers. The company claims to have its cards available in more than 59,000 US stores.
The company offered this explanation for today’s purchase:
The acquisition of Loopt will provide Green Dot with a number of key strategic benefits that are expected to a) improve customer acquisition and retention of its current prepaid debit card products, b) drive the adoption of new banking and payment products targeted to new segments of consumers, and c) provide the opportunity for Green Dot to become a leader in mobile wallets, rewards and payment solutions at retailers nationwide. Furthermore, Loopt holds several patents that are applicable to mobile marketing in the context of location-based messaging delivered real-time to a mobile handset. Green Dot believes that these patents will be important strategic assets as it pursues its mobile business opportunities.
Green Dot’s shares are up nearly 2% at $30.01 in a 52-week range of $24.94-$49.93.
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