The cloud-based digital banking solutions provider has signed a $510m all-cash deal to acquire PrecisionLender whose data-driven platform is used globally by nearly 150 banks
Q2 Holdings has agreed to acquire North Carolina-based fintech company Lender Performance Group (PrecisionLender) in an all-cash deal of around $510m.
PrecisionLender caters to financial institutions across the world with its SaaS-based data-driven sales enablement, pricing and portfolio management solutions.
The company’s data-driven platform is said to be enhanced by a digital enterprise coach called Andi, which uses machine learning technology.
PrecisionLender’s platform is used by nearly 150 banks across the world for structuring and negotiating commercial lending transactions. The Andi digital enterprise coach is said to have access to pricing and profitability data on millions of customer relationships and over $1.7trillion of transactions a year.
Using the data, Andi provides bankers with actionable, real-time, data-driven insights. It coaches commercial bankers to get improved outcomes for their banks and their customers.
PrecisionLender CEO and co-founder Carl Ryden said: “At its core, our technology helps bankers win better deals, create stronger relationships with customers and ultimately, build more valuable brands for themselves and their banks.
“Our company is built on a few simple ideas: to be helpful; be humble; be human and be honest, and Q2 operates with similar values. The PrecisionLender team is excited to join forces with the amazing talent and culture at Q2.”
Q2, on the other hand, is a Texas-based cloud-based digital banking solutions provider. The company’s subsidiary Cloud Lending, through automation and configuration, helps lenders close loans faster and bring down operational inefficiencies.
The acquisition of PrecisionLender is expected to grow Q2’s commercial banking solution offerings and total addressable market.
Q2 CEO comments on PrecisionLender acquisition
Q2 CEO Matt Flake said: “The combination of PrecisionLender, Cloud Lending and our expanding corporate banking capabilities position Q2 as the leader in digital transformation solutions for commercial banking.
“We are excited to help our customers use our combined data insights to build lasting relationships with their customers and are thrilled with the outstanding leadership, culture, and talent that PrecisionLender will bring to the Q2 family.”
Q2 plans to provide the additional infrastructure and support for PrecisionLender to advance its product offerings to customers.
The transaction, which is subject to regulatory approvals and other customary closing conditions, is likely to be closed in the fourth quarter of 2019.
Recently, Q2 entered into a partnership with Socure to provide the latter’s digital identity verification and fraud protection capabilities for banks through Q2 Open’s CorePro, a cloud-based core processor and system of record.