Zafin has been acquired by Sweden’s Nordic Capital, the companies announced this week.
Founded in 2002, Toronto-born financial technology firm Zafin offers a software-as-a-service platform for banks and other financial institution, including CIBC, HSBC, and Wells Fargo.
“This partnership is an absolute game-changer for the Zafin team and our customers,” believes chief executive officer Al Karim Somji, whose company has offices in Vancouver, Toronto, and Ottawa.
“Nordic Capital has been a keen observer of bank IT modernization efforts and has been highly impressed with Zafin’s innovative approach to helping its customers react to a constantly changing business landscape,” said Mohit Agnihotri, Partner Nordic Capital Advisors, citing the fintech’s “exceptional track record of success and resoundingly positive customer feedback are a testament to the entire Zafin team and product they have built.”
Nordic Capital’s majority share investment was made in close partnership with Zafin’s founders and management, who will reinvest in the company alongside the Stockholm-based Nordic, according to a statement from the firms.
“We have been powering the modernization and transformation of banks and future-proofing their banking technology investments for years,” Somji said. “With Nordic Capital’s scale, technology expertise, and deep market understanding, this partnership enables us to become a global leader in banking technology solutions.”
“We firmly believe that Zafin will emerge as a gold standard in bank IT modernization efforts,” stated Agnihotri. “Nordic Capital looks forward to partnering with Zafin management on the next phase of the company’s growth, including leveraging our seasoned inhouse operational team, deep expertise and expansive relationships in the sector.”
Since inception in 1989, Nordic Capital has invested over 21 billion euros across more than 125 companies.
Prior investors in Zafin included Vancouver headquartered growth-stage tech investor Vistara Growth, which recently announced an initial closing of US$150 million for its Technology Growth Fund V LP.
Vistara was launched in 2015 and first invested in Zafin 2016.
Zafin marks another exit for Vistara on top of Syscon, Mobify, and FinCAD.
Terms of the transaction were not disclosed.
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