Blockbuster Move: Green Dot Buys AccountNow, AchieveCard (Feb. 12, 2015)
Green Dot has acquired AccountNow and AchieveCard to expand its active cardholder base and distribution outside traditional retail, the company tells Paybefore. The acquisitions, which closed in Q1 2015 and Q4 2014, respectively, follow Green Dot’s September 2014 purchase of tax refund processor Santa Barbara Tax Products Group.
AccountNow, which launched in 2004, is a pioneer in the online distribution channel. AchieveCard, which targets the underserved population, is a pioneer in GPR cards featuring a rewards and loyalty component. Both companies bring online and targeted direct mail campaign expertise to Green Dot. The company estimates $78 million in revenue growth from the two acquisitions, according to an investor presentation related to Green Dot’s Q4 2014 quarterly earnings and 2015 outlook.
Green Dot plans to move the AccountNow and AchieveCard card portfolios to Green Dot Bank for issuance; however, the timing is not set. Although Green Dot didn’t comment specifically on whether the teams for the acquired companies would remain intact, a company statement says Green Dot has no plans to discontinue the AccountNow or AchieveCard brands.
“The industry in prepaid has consolidated quite a bit, and, as the biggest in that space, we’ve been able to take advantage of consolidation at highly preferred pricing,” Chairman and CEO Steve Streit told investors yesterday at Credit Suisse 16th Annual Financial Services Forum. Terms of the deals were not disclosed.
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