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PLANO, Texas - Alkami Technology, Inc. (NASDAQ: ALKT), a prominent provider of cloud-based digital banking solutions in the U.S., has entered into a definitive agreement to acquire Fin Technologies, Inc., known as MANTL, for $400 million. The transaction, expected to close by March 31, 2025, will be funded with approximately $380 million in cash and $13 million in restricted stock units for MANTL employees. The acquisition represents about 14% of Alkami’s current market capitalization of $2.93 billion. According to InvestingPro data, Alkami maintains a strong liquidity position with a current ratio of 3.52, suggesting ample resources for the acquisition.
MANTL’s technology facilitates the opening of commercial, business, and retail deposit accounts across various channels, including in-branch, call center, and digital. Its platform is utilized by 112 financial institutions, ranging from $80 million to over $20 billion in assets. The acquisition is set to bolster Alkami’s market position by creating a comprehensive digital sales and service platform for financial institutions. This strategic move comes as Alkami demonstrates strong revenue growth of 26.73% over the last twelve months, though InvestingPro analysis indicates the stock may be trading above its Fair Value. Subscribers can access 8 additional ProTips and comprehensive valuation metrics on the platform.
Alkami’s CEO, Alex Shootman, stated that the integration of MANTL will enhance their ability to assist financial institutions in acquiring and retaining customers more efficiently. He emphasized MANTL’s leadership in account opening solutions and its synergy with Alkami’s existing digital banking and data marketing capabilities.
MANTL, co-founded by Nathaniel Harley and Benjamin Conant in 2016, has assisted its clients in raising over $31 billion in deposits and saving more than 350,000 hours through automation. The company’s technology enables financial institutions to significantly reduce the time taken to open accounts, with a median retail account opening time of under five minutes and a median business account opening time of less than 10 minutes.
The acquisition is anticipated to enhance Alkami’s competitive edge and revenue growth by expanding market share and generating cross-sell opportunities within its client base. Alkami plans to discuss the acquisition further during its fourth quarter 2024 earnings call.
This strategic move aligns with Alkami’s mission to provide digital banking solutions that empower financial institutions to grow confidently and build thriving digital communities. The information regarding the acquisition is based on a press release statement from Alkami Technology, Inc.
In other recent news, Alkami Technology, Inc. has introduced the Business Banking Digital Maturity Assessment, a tool designed to help financial institutions enhance their digital strategies. This tool, developed in collaboration with Emerald Research Group and financial services influencer Jim Marous, allows banks and credit unions to evaluate their digital capabilities and identify areas for improvement. By completing the assessment, institutions can benchmark themselves against a research baseline and receive tailored recommendations to advance their digital transformation efforts. The assessment covers various dimensions, including payments, data and marketing capabilities, digital account creation, and integration with accounting systems. According to Alkami’s research, integrating culture, strategy, and technology is crucial for gaining a competitive edge in business banking. Allison Cerra, Alkami’s chief marketing officer, emphasized the importance of elevating business banking strategies based on the assessment results. Jim Marous noted that digital maturity is now a critical factor for business success, highlighting the need for a comprehensive approach to digital banking. This tool is freely available to financial institutions aiming to improve their digital services.
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