ARCADEA GROUP HAS ACQUIRED SUNTELL
Advisory Role: Krall & Co. Inc. advised Arcadea in connection with this transaction.
Announcement Date: July 27, 2022.
Target: Suntell (1996) provides the Square 1 Credit Suite, a loan management system used by community banks and credit unions to originate and manage commercial loans. The software suite’s functionality includes Credit Analysis, which enables spread analysis with RMA comparisons, cash flow analysis for complex entities, projections, and covenant management; Loan Approvals, which is used to prepare information packages for loan committee; Risk Rating, which uses objective and subjective measures to standardize and justify risk ratings; Exception Tracking, which helps banks manage documentation and loan exceptions with configurable ticklers that are automatically created as loans move through stages of approval and servicing; Document Imaging, which helps banks store digital documents, implement indexing structures, build audit trail capabilities, and export files for third-party review; Stress Testing, a risk management tool used to evaluated a borrower’s ability to repay under various economic conditions by stressing cash flow, interest rates and other economic variables; Collections & Workouts, a tool to manage collections on delinquent loans; Pipeline and Workflow, which helps bankers configure the steps of their loan process workflow, assign responsibilities to staff, and send email reminders of next steps; Electronic Tax Return Reader, which enables the importation of PDF tax returns for automated spreading; CECL Extract, which extracts data for use with CECL software; Portfolio Reporting, which automatically generates monthly board reports and helps bankers prepare various reports including concentration reports that segment a loan portfolio by industry, risk rating, and collateral; and Integrations with core software and doc prep software to reduce data entry.
Buyer: Arcadea Group is a permanent capital investment firm that invests in high-quality, independent, founder-controlled software companies.
Deal Rationale: The transaction provides liquidity for Suntell shareholders. The acquisition is Arcadea’s second in the banking software space. Also in July 2022, Arcadea announced the acquisition of Intelligent Banking Solutions, Inc. (“IBS”), a New Hampshire-based provider of debt collection and asset recovery management software.
Terms: Arcadea Group has acquired Financial Institutions Technology, Inc. (dba Suntell). Financial terms were not disclosed.