Segmint to be purchased by Alkami Technology, Inc.
On March 28, 2022, Plano, TX based Alkami Technology, Inc. (Nasdaq: ALKT), a leading cloud-based digital banking solutions provider for US financial institutions (FIs), announced it has entered a definitive agreement to acquire Segmint Inc., a leader in making account and transaction data usable and meaningful for FIs to deepen customer relationships and grow revenues.
Segmint was one of Westbridge Partners, LLC first early-stage venture capital investments with initial investments made in the form of convertible notes in 2010. The original cash investment made by Westbridge Partners, Inc. was later converted to equity in the form of common stock after subsequent rounds of financing were secured by Segmint. Tim Cantwell, Westbridge Partners Senior Managing Partner played an active role in Segmint’s formative years providing management counsel to Segmint’s leadership and staff, and was a vocal and active participant in key shareholder and board decisions and actions over the years.
"The Segmint team is extremely excited to join forces with Alkami," said Segmint President Adam Craig. "I look forward to expanding our mission to enable financial institutions to translate their data into actionable insights in pursuit of growth."
The transaction has been approved by the boards of directors of both companies and the stockholders of Segmint and is expected to close during the second quarter of 2022 subject to regulatory approval and customary closing conditions. Consideration will consist of $135.5 million of cash payable upon closing. Based on a transaction close date of June 30, 2022, Alkami expects Segmint to contribute approximately $7.0 million of revenue and an immaterial amount of adjusted EBITDA to its 2022 full-year financial performance. Alkami expects Segmint's annual recurring revenue under contract at December 31, 2022 to be in the range of $15 to $17 million, which represents a growth rate of 30% to 50% when compared to the same metric as of December 31, 2021.
Tim Cantwell added, “From the perspective of Westbridge Partners, this transaction is quite notable. After several years, Segmint has proven that its unique, patented I.P., its revenue stream and unique position have translated into substantial value with an acquisition price that equals 11-times its current annual revenue stream. Our hope at Westbridge Partners is that our other direct investments in marketing automation products and fintech SaaS models will prove to be as valuable in the future. Segment is a true, success story that demonstrates that hard work, perseverance and the ability to adapt pays off greatly.”
For more information on this transaction click on the link below: