Irish fintech Fenergo acquired by two private equity firms in $600m deal
Fenergo, the Irish fintech start-up focused on regulatory compliance, is to be acquired by a pair of private equity firms in a deal worth $600 million.
Marc Murphy, Fenergo founder and CEO
According to the Irish Times, whose sources estimated the sum of the undisclosed deal, Fenergo now sits at a value of around €900 million. That figure tips Fenergo into unicorn status, at least in US dollars.
Until now, New York-based venture capital firm Insight Partners owned Fenergo. But Paris-based Astorg and London-based Bridgepoint will soon co-own the 2009-founded fintech.
The software-as-a-services firm’s clients include UK insurance company Aviva, the Americas division of Mizuho Financial Group, and major European banks such as Santander, ABN AMRO, and BNP Paribas.
In the financial year to March 2021, Fenergo’s revenue grew 17% to $107 million. Marc Murphy, Fenergo’s founder and CEO, says the deal is in an effort to “pursue our ambitious high-growth strategy”.
Astorg cites the company’s “strong market position” and “consistent strong positive feedback from a customer base of large financial institutions” as key reasons for the deal.
A growing need
Fellow owner-to-be Bridgepoint mentions the “continued pressure on financial institutions to improve their compliance work”. While at the same time, managing margins and increased regulation.
Fenergo’s latest report found AML fines set new records in 2020, in turn proving the growing need for its services.
Financial firms parted with some $10.4 billion over breaches spanning financial crime, the Second Markets in Financial Instruments Directive (MiFID II) and data privacy.
There was a 26% rise in fine amounts, and the volume of fines also increased.
Fines have seen one of the most notable jumps in the Asia-Pacific region. Sitting at just $6.6 million in 2019, the region jumped to $5.1 billion in 2020.
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