Green Dot Corp. has agreed to buy location-based deals company Loopt Inc., the prepaid card marketer announced March 9.
The acquisition will allow Green Dot to build a mobile wallet and rewards system, the Monrovia, Calif.-based company says. The deal, which Green Dot expects to close this month, also would help retain established customers and attract new ones, the company said.
Green Dot agreed to pay $43.4 million for Loopt. About $9.8 million of that is to be set aside as a retention pool for certain Loopt employees, Green Dot said. It also plans to keep Loopt's Mountain View, Calif., headquarters.
"We believe that mobile phones have the potential to change the way people interact with their bank, control their money, and pay for goods and services," Steve Streit, Green Dot chairman and chief executive, said in a press release.
"When Loopt's assets are layered into Green Dot's platform, we believe that a significant opportunity emerges for Green Dot to become a large-scale player in mobile technology solutions at the retail point of sale," he said.