Why Marqeta Stock Rocked 3% Higher Today
Fintech stock Marqeta (NASDAQ: MQ) had a prosperous day on the market Tuesday, rising at an almost 3% clip to nearly double the percentage gain of the S&P 500 index. Investors, it seems, were reconsidering their initially bearish stance on the company's splashy new effort at expansion.
On Monday, Marqeta announced that it has agreed to purchase privately held Power Finance, a business that operates a credit card management platform. This is the company's first acquisition.
Marqeta will pay up to $275 million in cash to own Power Finance. Around one-third of this amount is payable over the next two years provided certain conditions are met; Marqeta did not provide any details on those conditions. That total consists of a potential $52 million milestone payment that is expected to be met within one year. Again, the fintech was light on details regarding the milestone.
Source Fool.com
