H.I.G. Capital has acquired Fort Lauderdale, Florida-based Velocity Solutions Inc, a provider of software and solutions to banks, credit unions and insurers. No financial terms were disclosed. William Blair & Company LLC served as financial adviser to Velocity on the transaction.
MIAMI–(BUSINESS WIRE)–Velocity Solutions, Inc. (“Velocity” or the “Company”) has been acquired by an affiliate of H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with $24 billion of equity capital under management, along with Velocity’s senior management team who will own a minority equity position in the Company.
Founded in 1995 and headquartered in Fort Lauderdale, FL, Velocity offers software and technology-enabled solutions to banks, credit unions and insurers to drive revenue, ensure compliance, and manage risk. Velocity’s compliance-focused Intelligent Limit System® dynamically customizes overdraft limits on a daily basis for each account holder based upon a consumer’s ability to repay using its proprietary technology. In addition, the Company provides a suite of tech-enabled solutions that leverage data to drive increased activity through targeted marketing campaigns, along with strategically deploying rewards programs for financial institutions and insurers. Finally, the Company recently launched CashPlease™, a solution that allows banks and credit unions to provide small, short-term loans to consumers as an alternative to high-cost storefront payday lenders.
“Velocity represents an attractive opportunity to invest in the marquee third-party overdraft and account activity enhancement solutions provider in the market,” said Keval Patel, Managing Director at H.I.G. “We are excited to back the long-serving management team to grow the business by continuing to invest in the Company’s current offerings and also by adding new cutting-edge solutions.”
“We are very excited about this next stage for Velocity. Our business is at an inflection point and H.I.G. is the right partner who is committed to investing in our business to allow our management team to take advantage of growth opportunities,” said Christopher Leonard, Velocity’s CEO. “Our clients, employees, and partners will benefit from a reinvigorated focus on product development and investments aimed at meeting the evolving needs of our clients.”
The Velocity investment adds to H.I.G.’s strong and growing presence in the technology sector with ten platform acquisitions in 2017 alone. William Blair & Company LLC acted as exclusive financial advisor to Velocity in the transaction and McDermott, Will & Emery LLP served as legal counsel to H.I.G.
About Velocity Solutions, Inc.
Velocity is the leading provider of technology enabled revenue-driving solutions for financial institutions through increasing transactional activity, acquiring new accounts, managing overdraft services, and creating new, innovative revenue streams. Servicing the transaction accounts of over 25 million consumers and business owners, the Company has unparalleled expertise and insight into deposit account activity and transactional trends.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $24 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused / value-added approach:
1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.