The prepaid card marketer Green Dot Corp. said Friday that it agreed to buy the location-based deals company Loopt Inc.
Green Dot, of Monrovia, Calif., said the acquisition would allow it to build out a mobile wallet and rewards system. The deal, which it expects to close this month, would also help Green Dot improve customer retention and target new consumer segments.
Green Dot agreed to pay $43.4 million in cash 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," said Steve Streit, Green Dot's chairman and chief executive, 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.