April kicked off with a lot of tech deals. One of the areas that has been front and center for those deals is financial technology. These deals target the institutional investment community, banks and other businesses that use financial software. PE Hub highlights these five deals that were announced since the beginning of the month.
1. Parthenon Capital to sell ICD
Parthenon Capital has agreed to sell Institutional Cash Distributors, an institutional investment software and technology provider for corporate treasury organizations trading short-term investments, to Tradeweb Markets for $785 million.
Founded in 2003 and based in Golden, Colorado, ICD’s services are utilized by the investment community, especially with independent research, trading, analytics and investment reporting. The ICD portal services 500 corporate treasury clients, across 65 industries and more than 45 countries, according to the company.
Parthenon Capital initially invested in ICD in January 2018.
“We have thoroughly enjoyed working with ICD and are extraordinarily proud of what we have achieved together. We wish the team all the best as they embark on their next stage of growth with Tradeweb,” said Brian Golson, co-CEO of Parthenon.
2. EQT agrees to sell Rimes to Five Arrows
EQT, together with its co-shareholders, has agreed to sell Rimes, an enterprise data management technology provider to the global investment community, to Five Arrows.
Rimes provides enterprise data management services to institutional investors and asset managers to help them make better decisions using accurate information and industry-leading technology, according to the company.
“We share in Rimes’ strategic vision centered around solving financial institutions’ most complex data problems across geographies, asset classes and customer types,” said Vivek Kumar and Sacha Oshry, partners at Five Arrows Principal Investments.
EQT initially invested in Rimes in 2020.
During EQT’s ownership, Rimes transformed from a specialist vendor of benchmark and index data solutions to a provider of full-spectrum enterprise data management as a service and investment management platform offerings to the global investment industry, according to a release.
3. Advent to take Nuvei private in $6.3bn deal
Advent International agreed to acquire Nuvei, a Montreal-based fintech company, in a take-private deal.
According to the terms of the agreement, Advent International will acquire Nuvei at $34 per share. The transaction puts Nuvei at an enterprise valuation of about $6.3 billion. Nuvei’s stock has stopped trading on the NASDAQ and the Toronto Stock Exchange.
Nuvei connects businesses to their customers in more than 200 markets, 150 currencies and 680 alternative payment methods, according to the company.
Philip Fayer will remain Nuvei’s chair and CEO and lead the business in all aspects of its operations. Nuvei’s current leadership team will also continue following the conclusion of the transaction.
Existing shareholder Fayer is rolling over substantially all of his existing equity and existing shareholders Novacap and Caisse de dépôt et placement du Québec are rolling over a majority of their existing equity.
“Nuvei has created a differentiated global payments platform with an innovative product offering that serves attractive payments end markets like global e-commerce, B2B and embedded payments,” said Bo Huang, a managing director at Advent in a statement.
The deal is expected to close in late 2024 or the first quarter of 2025.
4. Enlightenment Capital invests in software firm Summit Technology Group
Enlightenment Capital invested in Summit Technology Group, a provider of software for complex government, regulatory and financial workflows that is based in Mechanicsburg, Pennsylvania.
STG has software-as-a-service platforms, which include identity assurance and fraud detection functions that have been deployed in commercial banking institutions and in public sector programs.
Some of STG’s services are focused on lenders and crediting underwriting.
STG is also deploying its platform in projects related to the Treasury department’s Corporate Transparency Act, which requires many companies doing business in the United States to report information about the individuals who ultimately own or control them, according to the company.
“This partnership provides STG with the financial and strategic resources needed to continue innovating and building upon their software to bring greater efficiency and transparency to government and regulatory workflows,” Enlightenment Capital principal Thomas Young said.
5. Summit Partners invests $35m in Netgain
Summit Partners has invested $35 million for a minority stake in Netgain, a Denver-based software provider for finance and accounting teams.
Netgain offers a suite of services for asset management, advanced task management, automated reconciliation, accounting, loan management for lenders and borrowers and more.
Netgain was founded in 2018 by Nathan Smart and Adam Riches.
Summit Partners’ investment will be used for personnel hiring and product development.
“Today, many accounting and finance teams are still working with multiple tools and brute-forcing solutions in spreadsheets – drastically limiting the efficiency and effectiveness of these teams,” said Greg Goldfarb, a managing director at Summit Partners.
“Our investment in Netgain underscores our confidence in the company’s ability to deliver modern, integrated solutions that will help the office of the CFO undergo efficient technological transformation and drive economic growth for their organizations,” he added.
