ABRIGO ACQUIRES IFS
Advisory Role: Krall & Co. Inc. advised MeridianLink, Inc. in connection with this transaction.
Announcement Date: January 23, 2025
Target: Integrated Financial Solutions, Inc. (“IFS”) (1994) is a provider of cloud-based lease and loan origination and portfolio management software used by equipment finance companies and banks. The Company’s flagship software, IFSLeaseWorks, supports the entire lifecycle of lease and loan transactions from transaction structuring and pricing through application processing, credit decisioning, documentation, billing, collection, and remarketing. Customers consist of independent finance companies, captive finance companies, and banks.
Buyer: Abrigo (aka Banker’s Toolbox) provides compliance, credit risk, lending, and asset/liability management solutions to community financial institutions. Software products in its Lending and Credit Risk segment consist of a commercial loan origination system, small business loan origination software, consumer loan origination software, construction loan management software, community lending software, and credit underwriting software. Its Portfolio Risk & CECL segment product portfolio consists of allowance for credit loss & CECL software, an asset/liability management model, income recognition software to ensure GAAP compliance, investment accounting software to track complex investment activity, loan review software, and stress testing to identify, measure and manage portfolio risk. Its Compliance segment offers Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) software and fraud detection software. Further, Abrigo offers account opening software for deposit accounts. Accel-KKR invested in Banker’s Toolbox in 2015. In 2018, Banker’s Toolbox rebranded as Abrigo. Carlyle Group Inc. made a strategic growth investment in Abrigo in August 2021.
Deal Rationale: IFSLeaseWorks is complementary to Abrigo’s existing loan origination and management platform and enables Abrigo to offer a platform for equipment finance to its bank customers. Further, Abrigo broadens its customer base to include independent and captive finance companies.
Terms: Abrigo has acquired Integrated Financial Solutions, Inc. Financial terms were not disclosed.