Private equity firms Summit Partners and Vista Equity Partners are considering the sale of US-based financial software provider Trintech.
The potential deal is expected to be valued at approximately $2bn, including debt, reported Reuters, citing undisclosed sources with knowledge of the matter.
According to the news agency, the owners of Trintech have engaged investment bankers from Deutsche Bank to manage the sale process. The potential deal is anticipated to attract interest from other private equity firms.
Headquartered in Texas, Trintech offers cloud-based software that automates reconciliation and financial close processes.
The firm is estimated to generate around $200m in annual revenue and approximately $90m in earnings before interest, taxes, depreciation, and amortisation (EBITDA). The company’s owners are reportedly seeking a valuation that exceeds 20 times its core profits.
Trintech provides a comprehensive portfolio of financial solutions, including its Cadency Platform for large enterprises and Adra Suite for mid-market organisations.
These solutions cover a wide range of financial functions, from high-volume transaction matching and balance sheet reconciliations to intercompany accounting, journal entries, close management tasks, and governance, risk, and compliance.
The company’s other solutions include CadencyDirect on ServiceNow, DATAFlow, ReconNET, Frontier, Accurate and Discover Your ROI.
CadencyDirect on ServiceNow is tailored for the specific needs of the office of the chief financial officer (CFO).
Trintech serves approximately 4,200 organisations across the world by optimising data, controlling risk, driving efficiencies, and providing strategic insights for the companies. Toyota Motor and the Dallas Cowboys are notable clients of the financial software provider.
Summit Partners acquired a majority stake in Trintech in 2018 from Vista Equity Partners, which had first invested in the American financial software provider in 2015. Vista Equity Partners continues to hold a stake in the company.
Last year, Trintech acquired Frontier Reconciliation and Accurate Reconciliation from fintech and payments solutions provider Fiserv. The deal was in line with Trintech’s expansion of the accounting automation platform.
