Green Dot acquires Loopt for $43.4M
Banking and solutions provider Green Dot is acquiring social mapping service Loopt for $43.4 million in cash, including approximately $9.8 million to be set aside as a retention pool for key Loopt staffers. The transaction is expected to close by the end of the current quarter.
Launched in 2005, Loopt was an early leader in the location-based mobile social networking space, going live on Boost Mobile devices in the fall of 2006 and over time expanding its platform to embrace automatic check-ins, mobile advertising, local deals and user reviews. But as rival foursquare emerged as the dominant force in the check-in segment, Loopt lost steam. Late last year, Facebook acquired Gowalla, another foursquare rival in decline--although Facebook absorbed the majority of the Gowalla team, it halted support for the standalone Gowalla app.
Greet Dot provides low-cost banking and solutions targeting a broad base of U.S. consumers. Products and services include prepaid credit cards and a cash transfer network spanning across 59,000 retail stores nationwide. According to Green Dot, the Loopt acquisition will drive its mobile wallet strategy, improve customer acquisition and retention, and drive the adoption of new banking and payment products optimized for new customer segments. Green Dot promised to divulge more about its mobile strategy on its first quarter earnings call, scheduled for Apr. 26.
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