SoFi held acquisition talks with Charles Schwab

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SoFi, the online lending giant, held conversations with Charles Schwab about a potential acquisition by the brokerage firm, according to a source with knowledge of the discussions.

The M&A talks were first reported by the Financial Times and were said to take place earlier this year. In addition to Charles Schwab, the FT reported that there were discussions with several other unnamed companies, including a $6 billion offer from a foreign bank.

We’re told that SoFi would have considered a sale for $10 billion, but did not receive an offer this high. In its most recent round in February, SoFi raised funding from Silver Lake, at a valuation said to be north of $4 billion.

SoFi did not respond to request for comment. Charles Schwab did not respond to request for comment.

SoFi is one of the most well-capitalized startups, having raised over $2 billion in both debt and equity financing. The company has long-talked about an eventual IPO, but has not solidified plans.

Last month, co-founder and CEO Mike Cagney departed, following a wave of sexual harassment allegations against both him personally and others at the company. Executive Chairman Tom Hutton assumed the role of interim CEO. 

From student loans to life insurance, SoFi has a range of products and services. It also offers wealth management and processes mortgage loans and personal loans.

SoFi recently dropped its application to become a bank. 

The company was founded in 2011 and has been backed by SoftBank, IVP, DCM Ventures and others.

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