Blackhawk Network, a global financial technology company, last week acquired digital gift card provider CashStar for $175 million. 

Blackhawk said in a press release that the acquisition strengthens its position in the emerging digital gift card market and establishes the company as a leading provider in the fast-growing first-party digital gift card market.

"The acquisition strategically enhances Blackhawk's ability to provide the right digital solutions to our partners to meet the changing needs of business customers and consumers," Talbott Roche, CEO and president of Blackhawk Network, said in the release. "[W]ith CashStar margins projected in the range of 25 percent to 30 percent for fiscal 2018, Blackhawk maintains its focus on margin expansion."

CashStar CEO Ben Kaplan will continue to manage the business, reporting directly to David Jones, Blackhawk general manager of digital and incentives.