Digital banking solutions provider Alkami buys data insight fintech Segmint for $135.5m
Cloud-based digital banking services provider Alkami Technology is set to acquire Segmint, an account and transaction data fintech, for $135.5 million.
Segmint’s algorithms analyse transaction data to provide customer insights
Alkami intends to integrate Segmint’s machine learning technology with its digital banking capabilities to allow financial institutions to leverage transaction data and improve customer relationships.
The firm says its financial institution customers will benefit from a more complete view of their account holders.
Alkami CEO Alex Shootman says: “Our customers want to deepen their customer relationships and grow revenue. To do so, they must transform raw account and transaction data into insights that lead to highly personalised communications.
“Segmint applies machine learning to transaction data to help financial institutions better understand their account holders and automates messaging with incredible precision and personalisation across multiple channels.”
Additionally, the combined data sets that will result from the acquisition will give Segmint’s data models more input to work with and make them more precise and adaptable to different use cases.
The deal is expected to close in Q2 2022 and Alkami expects Segmint to contribute approximately $7 million worth of revenue over the year, with an annual recurring revenue in the range of $15-17 million.
Segmint counts 147 financial institutions as customers with approximately 15 million account holders between them.
Its algorithms are derived from the analysis of billions of transactions and draw on demographic, psychographic and behavioural data points.
Alkami says the deal will expand its total addressable market by approximately $1 billion and open up new client opportunities.
