Astorg and Bridgepoint Acquire Fenergo; Looks to Become $5bn Business

Irish fintech Fenergo has the potential to become a $5bn company, its chief executive Marc Murphy has said as the company confirmed that two private equity firms have bought a majority stake in the business.

No financial details of the deal have been publicly disclosed but as The Irish Times reported in late April, the company acquired unicorn status as a result of the deal, meaning it is now valued at over $1bn.

French private equity group Astorg joined with London-based Bridgepoint to buy out stakes previously owned by Insight Venture Partners and DXC in a deal valued by industry sources at $600m. This give Fenergo a market valuation of $1.165bn.

Confirming the deal, which is subject to regulatory approval, Mr Murphy said it would enable Fenergo to become a major player globally.

“We now have a platform to really scale and become a truly global enterprise business. There is going to be a large multimillion euro sum of money available for us to grow fast by aggressively acquiring businesses to complement what we do, which is something we haven’t done to date,” he said.

Compliance

“Our new backers believe we can become a much bigger business and they want us to build a $5bn company, rather than a $1bn one so we’ll be growing the company significantly over the coming years,” Mr Murphy said.

Fenergo works with 300 of the largest banks and insurers in the world, including ABN Amro, Aviva, Bank of China, Danske Bank, Credit Suisse, UBS, Santander and State Street.

Founded in 2008, it develops software for financial institutions that helps them with issues such as regulatory compliance and managing client data. In recent years it has also expanded into new sectors such as asset and wealth management.7.

Source: Irish Times