Jan 10 2023

AnaCap-backed Fintus, a leading SaaS provider to banks, completes bolt-on acquisition of software and services provider Finstreet

  • Fintus’ bolt-on of Finstreet supports the strategic expansion into software and services within Germany’s cooperative banking sector
  • Cross selling and new product development unlocked by high complementarity between Fintus’ low-code software platform and Finstreet’s front-end software capabilities
  • Strong pipeline for further acquisitions planned for 2023 targeting continued growth across the high potential Financial Services value chain

AnaCap Financial Partners (“AnaCap”), a leading specialist investor in mid-market Financials, Technology and related Business Services, today announces that its existing German portfolio company Fintus GmbH (“Fintus”), one of the leading DACH-based SaaS providers of low-code automation software to the Financial Services sector, has successfully completed the bolt-on acquisition of Finstreet GmbH (“Finstreet”), a software and services provider for the digital transformation of financial institutions.

Founded in 2014 and headquartered in Münster, Finstreet develops tailor-made workflow automation software for banks, leasing and factoring companies. Today, it has over 90 employees and more than 100 clients. Finstreet is also recognised as one of the key software providers to the German cooperative banking sector, specialising in developing highly customised technology for its clients that is scalable across the vast cooperative banking ecosystem.

Through this acquisition, Fintus is stepping up its already impressive growth efforts as a leading automation software provider to banks in a market benefiting from accelerating digitization tailwinds in Germany, as adoption levels for automation technology are still low compared to the rest of Europe.

The acquisition will accelerate Fintus’ ambitious growth strategy, following the majority growth investment by AnaCap in November 2021 and the remarkable growth track record of ARR quadrupling in the past few years, which was also recently recognized by Deloitte as part of the Technology Fast 50 Awards. It also further solidifies Fintus’ leading position in the DACH region with the expansion of its low-code banking platform (“Fintus Suite”) across Europe.

The combined Group will leverage the complementarity between Fintus’s proprietary low-code technology focused on private and development banks and Finstreet’s highly customizable front-end software capabilities and deep knowledge of the cooperative banking sector to unlock cross-selling opportunities across client bases and develop new integrated automation software products for banks and other financial institutions, further supporting recent momentum in growing ARR.

Finstreet’s core product is Eco.Banking, an end-to-end onboarding digitisation platform for commercial credit application activities that was developed in 2016. Eco.Banking is Finstreet’s most successful product offering to date.

Additionally, Finstreet have also developed DialogOnline, an omni-channel, low-code help desk and contract documentation management portal for banks and their clients. This was launched in 2021 in partnership with several cooperative banks.

As part of the succession plan and to ensure valuable continuity, the existing management team of Finstreet will join Fintus and become an integral part of the management team of the Group, including Finstreet Chief Executive Officer David Niedzielski, and other key Finstreet management; Dr. Holger de Bie, Patrick Lukas, Fabian Kammering.

 

This investment sees the continuation of AnaCap’s robust track record in Germany and the DACH region more broadly in recent years. This includes 4 platform deals in heidelpay, MRH Trowe, Fintus and WebID and close to 30 bolt-on deals across these portfolio companies.

Damjan Stojanovic, Investment Director at AnaCap, commented:

“We are delighted to announce this first bolt-on acquisition which will undoubtedly further support Fintus’ already exciting growth story through the continued development of product and service offerings across Germany. Finstreet is a leading, niche market player and we are particularly excited to welcome it into the Fintus network for this new chapter of growth. We look forward to announcing further acquisition activity in the first half of 2023 and beyond.”

Anja Scheffka, Chief Operating Officer at Fintus, added:

“We are very excited by this partnership given the two companies and their strong operational teams complement each other in such a robust and high potential manner. So much so, that only after a few days of the contracts being finalised, joint projects had already launched and were being successfully onboarded. The synergy between the teams is impressive and we are proud that we are preserving their two unique corporate cultures while combining this with a great effort to shape the future prosperity of the Group. The short-term goal involves creating and solidifying continuity and stability as well as developing our shared values.”

David Niedzielski, Chief Executive Officer at Finstreet, concluded:

“These exciting companies are united by a shared vision; to provide the best possible customer and end user experiences as well as to lock into the potential value-add and synergies that process digitisation can give to support financial services providers. This future proof network service portfolio will enable us to boost the speed of our development work and in tandem meet all the regulatory requirements that our sector focus requires. We are absolutely convinced that in the next few years we will continue to consolidate this market being one of a small number of key service providers with an exceptionally broad thematic range. Together with Fintus and AnaCap’s operational support, we will now look to consolidate and spearhead that trend.”