Q2 Holdings Inc., an Austin, Texas-based cloud-based banking software company, has acquired West Des Moines-based Social Money, the company that developed the SmartyPig social savings product.

Q2 acquired all of the outstanding interests of Social Money in exchange for $10.6 million cash payable at closing, subject to a customary working capital adjustment. A Q2 spokeswoman said Social Money's 12 employees will remain with the company at the West Des Moines office.

The addition of Social Money marks Q2's second acquisition in 2015, and further fuels its development of secure banking platform solutions for community financial institutions across the country, the company said in a release.

"Social Money's technology portfolio and expertise make this a strategic acquisition that will help Q2's customers expand their reach, grow market share and engage account holders," said Matt Flake, president and CEO of Q2. "The digital banking experience matters when it comes to reaching millennials and retaining existing account holders. We are committed to providing community financial institutions innovative technology specifically designed for the increasingly digital modern consumer, and I believe the addition of Social Money will help us do just that."

Social Money was founded in 2008 by Jon Gaskell and Michael Ferrari to roll out SmartyPig, a goal-based savings program in which savers use social media to announce goals and solicit participation from friends and family members. Its client list includes H&R Block and Sallie Mae.

The acquisition of Social Money will provide Q2 with additional expertise in the direct-to-digital arena, a critical area for Q2's customer base where consumers are increasingly more digital and branchless in their banking habits. Social Money creates new ways for financial institutions to address this consumer base while driving down costs and using the resulting savings to provide competitive product offerings.

Social Money will continue its relationship with existing clients while working directly within Q2's research and development team to continue to establish innovative offerings for its digital banking channels, the company said. Q2 is evaluating the integration of Social Money's portfolio and plans to begin offering a rebranded suite of Social Money technologies to its customer base starting in 2016.