Fenergo, an Irish fintech company, is set to be bought out by two large investment firms. The EU has recently approved Bridgepoint and Astorg for a buyout of Fenergo. The Irish fintech equips the world’s biggest banks with softwares. These softwares include client management, anti-fraud, onboarding, regulatory compliance, and data management to help client companies abide by anti-money laundering, taxes and other regulations.
Some of Fenergo’s clients include NatWest, Santander, Credit Suisse, BNP Paribas, Danske Bank, State Street, and Bank of China. The company was established in 2009 and is considered to be Ireland’s newest unicorn. Currently, the company employs 850 people spanning the globe. Back in November, the company was named Irish tech company of the year.
Bridgepoint is a UK asset management firm and Astorg is a private equity group. Astorg has over €10 billion in assets and a lot of experience with investment in top software, technology, and healthcare firms in the US and Europe. The buyout had originally been announced in May, but the terms of the negotiations were not released.
Press reports have valued the transaction at just over €500 million with the company estimated at €900 million. The majority of Fenergo’s ownership had been acquired by Insight Partners, a New York venture capital company, in 2015.
In 2020, Fenergo concluded a two-step funding round period with ABN Amro and DXC Technology. This funding round brought the company to a $800 million valuation at that time. As of March 2021, Fenergo’s revenue increased by 17 percent, totaling $107 million. The European Commission announced that this buyout is in alignment with EU rules because both the businesses’ individual and combined market shares continue to be slight for vertical and horizontal relationships in the markets they are active in.
It is protocol that companies pre-notify the European Commission of deals such as the buyout “with an EU dimension.” Most of the time, companies with a combined market share of less than 25 percent will be cleared quickly. Deals that have to do with larger market shares require additional investigation to the routine check.
Marc Murphy, Fenergo’s founder and CEO, stated that this deal would allow the company to be backed with the financial strength they will need to be successful in their high-growth strategy.
Collins, Sarah. “EU Approves Purchese of Fintech Fenergo By Investment Funds.” Independent.ie, 14 July 2021, https://www.independent.ie/business/technology/eu-approves-purchase-of-fintech-fenergo-by-investment-funds-40650587.html.
Kennedy, Jack. “Fenergo Acquisition Approved By EU Commision.” siliconrepublic, 14 July 2021, https://www.siliconrepublic.com/companies/fintech-fenergo-acquisition-approved.