Francisco Partners has invested in NMI, taking a majority stake. Financial terms weren’t announced. The deal, which has closed, calls for Bregal Sagemount to sell its holding, while Great Hill Partners will remain a significant shareholder. NMI, of Roselle, Illinois, provides payments enabling technology for ISOs, VARs, ISVs. Financial Technology Partners LP provided financial advice to NMI, while Goodwin Procter LLP acted as legal advisor. William Blair & Company provided financial advice to Francisco Partners. Kirkland & Ellis LLP was the attorney for Francisco.
Roselle, IL and San Francisco, CA – September 7, 2017 – NMI, a leading provider of payments enablement technology for ISOs, VARs, ISVs and payment facilitators, today announced a substantial investment in the company from Francisco Partners, a global technology-focused private equity fund. The majority investment will provide NMI with new capital to drive product innovation and expansion of its enablement capabilities. As part of this transaction, existing investor Bregal Sagemount will be exiting its investment in the company and existing investor Great Hill Partners will remain a significant shareholder.
NMI has grown substantially in recent years as ISOs, VARs, ISVs and payment facilitators increasingly demand white label payment gateways and other enablement solutions. The new capital from Francisco Partners will allow NMI to continue to expand its core capabilities and customer service levels.
“We are extremely excited to announce this growth investment from Francisco Partners,” commented Roy Banks, CEO of NMI. “We look forward to investing heavily in the platform in the coming years and working closely with the Francisco Partners team to continue to build a world class company.”
“NMI enables critical payment functionality for over 1,000 affiliates and 100,000 merchants,” commented Peter Christodoulo, Partner at Francisco Partners. “The NMI team, led by CEO Roy Banks, CFO Kyle Pexton, CTO Matt Schmidgall, VP of Product Nick Starai and SVP of Business Development Rich Swiderski have created an outstanding payments platform, and we are excited to partner with them through NMI’s next stage of reinvestment and growth.”
As part of the transaction, Bregal Sagemount will be exiting its investment in NMI. Gene Yoon, Managing Partner at Bregal Sagemount commented, “We have enjoyed working with NMI’s founders and management team in true partnership to build NMI into one of the most dynamic payments companies. We are confident the management team, as well as the new and ongoing shareholders, will continue to accomplish great things with the business.”
Existing investor Great Hill Partners will continue to be a major shareholder with Board representation. “We are thrilled to continue our partnership with the NMI team and work with Francisco Partners to support the company’s growth plans,” commented Matt Vettel, Partner at Great Hill Partners.
Financial Technology Partners LP acted as exclusive strategic and financial advisor and Goodwin Procter LLP acted as legal advisor to NMI and its Board of Directors. William Blair & Company acted as exclusive financial advisor and Kirkland & Ellis LLP acted as legal advisor to Francisco Partners. The transaction has closed and financial terms were not disclosed.
NMI provides payments enablement technology that empowers ISOs, VARs, ISVs and payment facilitators to offer branded payment gateway services without building or maintaining their own technology. Our exceptional team of software engineers has created a security-focused, feature-rich, omni-channel payment gateway platform that partners can completely and transparently brand, removing NMI from their merchant customers’ view. Headquartered in Roselle, Illinois, NMI is the operating trade name of Network Merchants, LLC. For more information, please visit www.nmi.com.
About Francisco Partners
Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 17 years ago, Francisco Partners has raised over $10 billion in capital and invested in more than 200 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where its deep knowledge and operational expertise can help companies realize their full potential. For more information, please visit www.franciscopartners.com.
About Bregal Sagemount
Bregal Sagemount is a growth-focused private capital firm with $1.7 billion in committed capital. Founded in 2012, the firm provides flexible capital and strategic assistance to market-leading companies in high-growth sectors across a wide variety of transaction situations. Bregal Sagemount invests $8 million to $150 million per transaction into both control and non-control positions, and will make equity and/or junior debt investments. Targeted sectors include software, digital infrastructure, healthcare IT services, business and consumer services, and financial technology / specialty finance. For more information, please visitwww.sagemount.com.
About Great Hill Partners
Great Hill Partners is a Boston-based private equity firm that has raised over $5 billion in commitments since inception to finance the acquisition, recapitalization, or expansion of growth companies in the communications, financial technology, healthcare, information services, Internet, media, retail, consumer, and software industries. Great Hill targets investments of $25 million to $200 million. For more information, please visit www.greathillpartners.com.