Dublin fintech Fenergo to be acquired by Astorg and Bridgepoint

18 May 2021

Image: © David/Stock.adobe.com

Two equity firms have signed an agreement to acquire Fenergo following a period of strong expansion at the Irish company.

Fenergo is to be acquired by private equity firms Astorg and Bridgepoint for an undisclosed sum.

The acquisition follows a period of strong expansion for Fenergo and will drive investment in the Irish company’s SaaS strategy, product line development and support an expanding team through the next phase of growth.

Established in 2009, Fenergo’s client life cycle management software helps financial services firms with everything from initial onboarding to regulatory compliance and data management.

It works with some 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.

Last year, the Dublin fintech raised $80m in investment from ABN Amro Ventures and DXC Technology, and was named Technology Ireland Company of the Year in November.

Last month, the company announced plans to hire for 100 new jobs in Dublin by the end of this year. In the financial year ending March 2021, Fenergo’s revenue increased by 17pc to $107m.

Financial terms of the acquisition deal were not disclosed, but the Irish Times recently reported that Fenergo had sold a majority stake in the business for $600m, in a deal that valued the company at more than $1bn.

Fenergo’s founder and CEO, Marc Murphy, said Paris-based Astorg and London-based Bridgeport will provide Fenergo with the financial strength to pursue an ambitious high-growth strategy.

“Both Astorg and Bridgepoint have enormous experience and credibility in our sector, something I am keen to leverage over the coming years,” he said. “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.”

Benoît Ficheur, who is in charge of growth investments at Astorg, said the equity firm has been tracking Fenergo for many years and has been impressed with its strong market position.

“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,” he said. “This investment confirms our commitment to backing fast-growing and innovative software leaders.”

David Nicault, who is responsible for Bridgepoint’s investment activity in technology, added that financial institutions are facing ongoing pressure to improve their compliance while managing margins and increased regulation.

“[This] 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,” he said.

Jenny Darmody is the editor of Silicon Republic