TA Associates Joins OceanSound Partners to Accelerate Growth and Innovation at Kinective
PHOENIX – Oct, 2023 – Kinective, a leading provider of connectivity,
workflow, and analytics software for the banking sector, today announced that
it will receive a strategic investment from TA
Associates (“TA”) and existing investor OceanSound Partners (“OceanSound”). This
transaction will enable Kinective to bolster product innovation, increase investment
in sales and support resources, and deliver enhanced value to its customers. Upon
completion of the transaction later this year, TA and OceanSound will become
equal partners in Kinective. Terms of the transaction were not disclosed.
Kinective was formed in June 2023 through the combination of CFM, NXTsoft, and IMM, three fintech companies that together provide API connectivity, workflow automation, and data analytics software. The Company delivers the most comprehensive, open, and connected technology ecosystem in banking, helping financial institutions unlock new services, modernize operations, and elevate client experiences. Across offices in Phoenix, Orlando, and New Jersey, Kinective’s 275 team members serve more than 2,500 banks and credit unions, representing one out of every four U.S. financial institutions.
“We
are thrilled to partner with TA and OceanSound as we enter this next phase of
growth,” said Stephen Baker, CEO of Kinective. “Over the past year, we have
integrated our three constituent businesses and made sizeable investments in
our people and systems to support our expanded scale. During this time, we have
empowered our customers with the freedom to transform at their own pace with bespoke
fintech solutions. With TA’s extensive experience scaling software companies
and OceanSound’s proven operational capabilities, we are better equipped to
achieve our mission of helping customers connect to banking’s future.”
“Kinective
is a force multiplier in banking, enabling access to innovation so financial
institutions can reduce time-to-market of new technology, lower operating
costs, build connected experiences, and delight their clients,” said Hythem
El-Nazer, Managing Director, and Mike Libert, Managing Director at TA. “We
believe there is considerable opportunity to unlock further value for Kinective’s
customers through product investments, new partnerships, and strategic acquisitions.
We are pleased to join OceanSound as partners in Kinective and look forward to
leveraging TA’s software expertise and global add-on acquisition and
integration capabilities to drive sustained growth.”
“Since
we began our partnership in December 2021, Kinective has undergone significant
transformation and more than tripled its revenues, outpacing our growth
expectations,” said Ted Coons, Partner, and Parin Shah, Principal at OceanSound.
“Over this time, we have helped the Company transform its go-to-market
strategy, expand its customer base, and strengthen its product suite via
organic initiatives and two strategic acquisitions. We are excited about the
next chapter of Kinective. TA and OceanSound’s combined value-add capabilities will
ensure the management team is equipped with substantial resources to bring
additional products and functionality to customers.”
“Our
investment in Kinective reflects OceanSound’s approach of partnering with
founder-owned companies to drive value creation through organic growth
initiatives and add-on acquisitions,” said Joe Benavides, Managing Partner at
OceanSound. “Kinective is well-positioned to sustain its rapid expansion and
meet the increasing demand for digital transformation solutions in the banking
sector. We believe that TA is the best partner who can augment our efforts to
help the Company accelerate its impressive growth potential.”
Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to Kinective and OceanSound. Goodwin Procter LLP provided legal counsel to TA Associates.
About Kinective
Kinective is a leading provider of connectivity, workflow, and analytics software to more than 2,500 banks and credit unions in North America. Kinective was created in June 2023 as the new brand uniting CFM, NXTsoft, and IMM, three complementary financial technology companies that together have over 70 years of experience in banking. Kinective provides financial institutions with access to innovation, helping them unlock new possibilities and connect to the future. Kinective is a portfolio company of OceanSound Partners. For more information, please visit www.kinective.io.
About TA
TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries – technology, healthcare, financial services, consumer, and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai, and Hong Kong. More information about TA can be found at www.ta.com.
About OceanSound Partners
OceanSound Partners is a New York-based private equity firm that pursues control investments in technology and technology-enabled services companies serving government and enterprise end markets. OceanSound employs a partnership approach, working closely with founders, entrepreneurs, and executives of middle market businesses to drive transformational growth. For more information, please visit www.oceansoundpartners.com.