Dublin fintech Fenergo acquired by global equity firms

Fenergo, a provider of Know Your Customer and client lifecycle management software, harbours ambitions to be a $5bn fintech giant.

Equity firms Astorg and Bridgepoint have signed an agreement alongside the company’s management team to acquire the majority stake in Dublin fintech Fenergo.

One of Ireland’s few unicorn tech giants – valued at more than $1bn – Fenergo has plans to grow from a $1.65bn valuation today a reported $5bn in the coming years.

“We are delighted that Astorg and Bridgepoint have chosen to invest in our company, providing us with the financial strength required to pursue our ambitious high-growth strategy”

Astorg, Bridgepoint and Fenergo’s management team acquired the majority stake from Insight Partners.

While no financial details of the transaction were revealed, the company said the acquisition follows a period of strong expansion for Fenergo and will drive investment in the firm’s SaaS strategy, product line development and support an expanding team through the next phase of growth.

Foundation in fintech

“We are delighted that Astorg and Bridgepoint have chosen to invest in our company, providing us with the financial strength required to pursue our ambitious high-growth strategy,” said Fenergo’s founder and CEO Marc Murphy.

“Both Astorg and Bridgepoint have enormous experience and credibility in our sector, something I am keen to leverage over the coming years. Ultimately, we only exist to serve the needs of our customers. We are looking forward to partnering with them in the next phase of our development.”

Established in 2009, Fenergo’s award winning SaaS platform provides solutions to the world’s largest and most complex financial institutions, helping to fight financial crime and to enhance customer journeys while being compliant every step of the way.

Fenergo currently helps top financial institutions including ICBC Standard Bank, Santander, Mizuho, ABN AMRO and BNP Paribas to digitally transform their end-to-end client lifecycle processes. Fenergo’s API-first ecosystem of channels, systems and data providers enables financial institutions to offer a truly frictionless customer experience.

The company operates in a specialised part of the highly regulated financial services sector, with strong potential for continued growth given the increasing importance of digitalisation and compliance.

In the financial year ending March 2021, Fenergo’s revenue increased by 17pc to USD$107m.

“We have tracked Fenergo for many years and have been impressed with its strong market position, innovative technology and consistent strong positive feedback from a customer base of large financial institutions,” said Benoît Ficheur, partner in charge of growth investments at Astorg.

“We are thrilled to partner with Bridgepoint to help shape the future of this unique company. Marc Murphy and his team have proven their strength year after year in this very demanding industry. This investment confirms our commitment to backing fast-growing and innovative software leaders.”

Bridgepoint technology investor partner David Nicault added: “Continued pressure on financial institutions to improve their compliance work, while at the same time managing margins and increased regulation, has created the need for integrated digital solutions that enable reduced operating costs, improve capital allocation and comply with regulations. We are looking forward to working closely with the management team at Fenergo as they build on the company’s success to date and realise its full growth potential.”

By John Kennedy (john.kennedy3@boi.com)

Published: 19 May 2021