Nordic Capital has agreed to acquire Canadian banking technology company Zafin.
The acquisition will help Zafin become a “global leader in banking technology solutions.”
Zafin made its Finvoate debut at FinovateFall in 2017.
Nordic Capital agreed this week to acquire a majority share in Canadian SaaS core modernization solution provider for FIs, Zafin. In a statement, Nordic Capital noted that the investment was made “in close partnership with Zafin’s founders and management, who will reinvest in the company alongside Nordic Capital.”
Terms of the transaction were not disclosed. The deal is expected to be completed during the first quarter of this year, subject to standard closing conditions.
Zafin CEO Al Karim Somji called the transaction an “absolute game-changer” for his team and its customers. “We have been powering the modernization and transformation of banks and future-proofing their banking technology investments for years,” Somji said. “With Nordic Capital’s scale, technology expertise, and deep market understanding, this partnership enables us to become a global leader in banking technology solutions.”
Nordic Capital Advisors Partner Mohit Agnihotri said the deal will help Zafin “emerge as a gold standard in bank IT modernization efforts.” He added, “Nordic Capital has been highly impressed with Zafin’s innovative approach to helping its customers react to a constantly changing business landscape.” Based in Stockholm, Sweden, Nordic Capital invests in companies headquartered in both Northern Europe and North America. The firm has made 24 technology and payments platform investments since 2001, deploying $6.5 billion (€5.8 billion) in equity capital. Nordic Capital includes Finovate alums boost.ai, Signicat, and Trustly among its portfolio companies.
Zafin’s customers include FIs such as Wells Fargo, US Bank, HSBC, Truist, and PNC. The company’s core SaaS platform enables users to collaborate in the design and management of pricing, products, and packages. The platform also gives users the ability to respond dynamically to changing customer preferences and market opportunities. This means faster time to market, greater potential revenues, lower operating costs, and fewer operational risks – all while maintaining compliance and transparency.
Banks using Zafin’s technology have experienced 129% increase in deposits, 50% improvement in time to market, and 70% reduction in annual fee change processing costs. Five of the top seven banks in the U.S. run on Zafin’s platform. The company processes more than 500 million accounts every day.
Zafin made its Finovate debut at FinovateFall in 2017. At the conference, the company demoed its enterprise banking platform that enables FIs to manage dynamic multi-product offerings, real-time pricing and billing, loyalty and rewards, analytics, and cash management.
Headquartered in Toronto, Ontario, Canada, Zafin was founded in 2002. A few months ago, we caught up with Zafin President of Modernization and Transformation Charbel Safadi. In a wide-ranging conversation, we discussed the challenges faced by banks when it comes to digital transformation. Safadi also shared his thoughts on what FIs can do to future-proof their businesses.
Photo by Brett Sayles
