AT&soft is offering $2.2 billion to buy ScotiABank, the company that created the ScotiBank online banking platform, the companies announced Tuesday.
ScotiABanks is currently backed by a $4 billion funding round led by Union Square Ventures, the firm that helped bring Airbnb to New York City.
The company was spun off from AT&T in 2014.
The acquisition would help Scotiabs new team, the announcement said.
The company was founded in 2012, and Scotiibanks raised $3.5 million in venture capital in December 2016, according to a news release from AT &Ts CEO Brian Roberts.
Scottie Hughes, ScotiAbank co-founder and CEO, told CNBC that the deal would allow the company to continue growing and to offer the technology for banking to customers who use the company’s platform.
Scotiiba’s technology, Hughes said, is a better alternative to the current banking platforms for people who don’t have the time to use a bank account or don’t want to spend a lot of money on it.
Scotoabank is also looking to expand its product line.
Hughes said Scotiabaks product line, which includes financial products like consumer credit cards, credit cards for companies and a banking application for small businesses, has grown from a few hundred users to a few thousand.
Hughes said the deal will allow Scotiaban’s business to continue expanding in ways it’s never been able to before.