Carlyle to invest in Abrigo at $1 billion-plus valuation

Abrigo, an Accel-KKR-backed software program supplier for monetary establishments, has secured an funding from personal fairness agency Carlyle Group Inc.

The Austin, Texas-based firm is valued at greater than $1 billion after the funding, in keeping with individuals with data of the matter who requested to not be recognized discussing personal data.

Phrases of the deal weren’t disclosed and Carlyle and Abrigo declined to touch upon the valuation. With the transaction, Carlyle turns into an equal companion within the enterprise with Accel-KKR, which has backed it since 2015, stated Abrigo Chief Government Officer Wayne Roberts.

Abrigo’s software program offers a number of providers to the banking trade together with fraud prevention, lending and threat administration, compliance and knowledge and analytics. The corporate has over 2,300 clients and income development of greater than 30% 12 months over 12 months, in keeping with a press release.

The corporate’s merchandise tackle a number of ache factors within the monetary establishments universe whereas most software program corporations focus solely on one perform inside the market, Roberts stated in an interview.

“We now have rivals in every one among them,” he stated. “We now have no competitor that does all of them.”

The Carlyle funding will permit the corporate to take a look at “transformative” and “materials” acquisitions, Roberts stated.

There are a number of corporations which can be thought of “excessive precedence” and offers discussions may start in a number of months, stated Anna Tye, a managing director at Carlyle who has performed a key position within the agency’s monetary expertise investments reminiscent of Dealogic Plc.

Carlyle is searching for to boost as a lot as $27 billion for its newest flagship fund, in what can be the trade’s largest-ever personal fairness pool, Bloomberg Information beforehand reported.

Progress Technique

“This administration crew is a administration crew that has a observe file of efficiently integrating M&A and a crew that’s able to operating a a lot bigger enterprise,” she stated.

Abrigo’s natural and inorganic development will possible give attention to its present buyer base — small- and midsize monetary establishments reminiscent of group banks and credit score unions throughout the U.S., Tye stated.

“It’s actually targeted round serving to monetary establishments generate income and function extra effectively and in compliance with sure laws,” she stated.

Goldman Sachs Group Inc. was lead monetary adviser to Carlyle on the deal, whereas Abrigo was suggested by Raymond James, in keeping with the assertion.

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