NEW YORK (TheStreet) -- Shares of Green Dot Corp. (GDOT) are higher by 3.30% to $19.57 in mid-afternoon trading on Thursday, after the company announced its plan to acquire the privately held Santa Barbara Tax Products Group for approximately $320 million in cash and stock.
Green Dot, a bank holding company, said it believes Santa Barbara Tax Products Group, a company that offers tax-related financial products, is "a great acquisition," as it will "generate mid-teens percentage accretion to 2015 non-GAAP earnings per share."
"The transaction is expected to expand Green Dot's margins thereby enabling Green Dot to generate higher and more diversified earnings," company CEO Steve Streit said.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Additionally, as a result of this new acquisition, Green Dot lowered its 2014 full year financial outlook, and is now expecting adjusted EBITDA to be between $122 million and $126 million, from its previous guidance of $128 million to $132 million.
Non-GAAP diluted earnings per share are now forecast to be between $1.25 per share and $1.29 per share for the full year, compared to the company's original estimates of EPS between $1.37 and $1.41.
Revenues are expected between $610 million and $620 for fiscal 2015. Green Dot originally guided for revenue between $640 million and $650 million.
Separately, TheStreet Ratings team rates GREEN DOT CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: