Payments platform company Marqeta (NASDAQ: MQ) is opening its pocketbook, dropping $223 million in cash to acquire a fintech start-up called Power Finance. It's the company's first-ever acquisition and comes at a pivotal point for Marqeta, which only recently identified its new CEO to replace Jason Gardner, who is stepping down. How will Power Finance help Marqeta grow?
Marqeta has actually displayed strong growth during its public life, beating revenue estimates in every one of its earnings releases since going public. Part of the reason Marqeta has sold off despite relatively solid results was last summer's announcement that founder and CEO Jason Gardner would be stepping down as CEO and into the executive chairman role. No replacement had been announced for months, and Marqeta's stock continued to languish.