FINASTRA HAS ACQUIRED MALAUZAI SOFTWARE, INC.
Advisory Role: Krall & Co. Inc. advised Malauzai in connection with this transaction.
Announcement Date: June 15, 2018.
Buyer: Finastra was formed in 2017 when Vista Equity Partners acquired D+H and merged it with Misys, which was already a Vista portfolio company. The combined companies provide a broad portfolio of financial services software – spanning retail banking, lending, transaction banking, and treasury and capital markets. The Company also provides Finastra Digital, which is an online and mobile banking offering that integrates with Finastra’s software solutions. Finastra’s FusionFabric.cloud is a PaaS solution that serves as a platform for the API economy. The Company’s solutions can be deployed on premises or in the cloud. Customers include 48 of the top 50 banks in the world.
Target: Malauzai Software, Inc. (2009) develops digital banking solutions for community banks and credit unions. The Company’s Mobile Only Experience (MOX) design philosophy delivers a simple and consistent user experience on all devices, including browser and desktops, across all users (consumer, business and employee). Malauzai offers self-service and easy access features such as “no click” quick balances, touch ID, E-statements, a branch and ATM finder, a PIN login for additional security, a facial recognition login, and a Mobile Teller. Other features include Money Movement & Bill Pay, which includes RDC, PicturePay, P2P money transfers using SMS or email, account-to-account money transfers between financial institutions, MOX Pay, and ACH and Wire File Processing; Card Controls, which include a Family Financial Manager, a SmartKid Card Control and Advanced Card Controls; Personal Financial Management (PFM); Personalized Transactions, which enables users to attach images to record purchases or receipts; Marketing Campaigns and In-App Messaging, which allow financial institutions to target market; and Analytics and Usage Reports, which help financial institutions gain insight into digital banking behavior to improve decision-making and identify revenue opportunities. Malauzai’s open banking platform creates a banking ecosystem which provides users access to third party financial technology providers.
Deal Rationale: The transaction demonstrates Finastra’s commitment to the U.S. retail banking market. D+H and Malauzai have had a channel partnership in place since 2014. Malauzai, which will operate as a Finastra company, will continue to sell and support Malauzai’s digital banking products across the U.S. In addition, Finastra picks up a technology team adept at open banking architecture.
Terms: Finastra has acquired Malauzai Software, Inc. Terms were not disclosed.