Astorg, Bridgepoint to buy fintech unicorn Fenergo to capture strong expansion opportunity

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French private equity group Astorg has teamed with London-based Bridgepoint to pick up fintech company Fenergo from Insight Partners. The firms said the agreed acquisition follows a period of strong expansion at the Dublin-based business.

The firms reportedly paid $600m for a majority stake in the company leading to Fenergo being valued at over $1bn. AltAssets understands from its own sources that the EV figure is north of €900m.

Insight Partners first invested in the business in 2015 by providing $75m.

Fenergo providers software for financial institutions to help fight financial crime and enhance customer experiences. Its revenue increased by 17% to $107m in the financial year ending March 2021, with clients including ICBC Standard Bank, Santander, Mizuho, ABN AMRO and BNP Paribas.

A joint statement from the firms said the company operates in a specialised part of the highly regulated financial services sector, with strong potential for continued growth given the increasing importance of digitalisation and compliance.

David Nicault, partner responsible for Bridgepoint’s technology investments, said, “Continued pressure on financial institutions to improve their compliance work, while at the same time managing margins and increased regulation, 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.”

In March Astorg expanded its portfolio in fintech by buying into no-code process automation specialist Xceptor, which serves banking, financial services and insurance customers.

The firm beat its fundraising target in 2019 to close its latest buyout fund on its €4bn hard cap in just three months.

Bridgepoint’s recent dealmaking in the software industry has including the sale of Calypso Technology to Thoma Bravo in a $3.65bn deal, marking a 6.5x return.

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