Fintech Gradifi Acquired by First Republic Bank

Note from the CEO: Everybody pay attention; This is how it is supposed to work. You start up a business (preferably a good one) and after one (1) year you get acquired AND the new company pays you to continue doing what you do. Ah, America does work.

Gradifi which launched just last year is being acquired by San Francisco’s First Republic Bank. Gradifi is a student loan repayment platform based in Boston (where it will remain) will be a wholly owned subsidiary of FRB. No financial details BUT seems like a great fit.  FintekNews covered Gradifi recently (see story link here).

“San Francisco-based First Republic Bank announced on Monday that it has acquired Gradifi, which is now a wholly-owned subsidiary of the bank, with founder Tim DeMello remaining as its CEO. Gradifi’s headquarters will remain in Boston, with additional employees in New York, Los Angeles, Palo Alto and San Francisco as part of the deal. The bank said there are extended employment contracts for DeMello and several other senior management members.

Financial terms of the all-cash deal were not disclosed.

Gradifi’s platform lets employers make direct contributions to employees’ student loans as an employee benefit — almost like a 401K, except for student loans — with the ultimate goal of helping employees reduce their overall repayment period and the total cost of their loans. It’s also advertised as a benefit employers can use to improve employee retention.

Gradifi’s clients range from small businesses to larger enterprises, including PricewaterhouseCoopers, Natixis Global Asset Management, and Penguin Random House.”

Source: Bostinno