nCino acquires Sandbox Banking to bolster data integration

WILMINGTON, N.C. - nCino, Inc. (NASDAQ: NCNO), a provider of banking solutions with a market capitalization of $3.82 billion and strong revenue growth of ~13% year-over-year, announced today the acquisition of Sandbox Banking, aiming to enhance data connectivity and operational efficiency for financial institutions. The $52.5 million cash deal, with a potential additional $10 million earn-out, is expected to provide banks and credit unions with an advanced Integration Platform as a Service (iPaaS) solution to simplify and accelerate their digital transformation projects. According to InvestingPro analysis, nCino operates with a moderate level of debt and maintains healthy liquidity with a current ratio of 1.95.

Financial institutions often encounter delays and high costs when integrating new systems or launching products due to complex digital transformation challenges. nCino’s acquisition of Sandbox Banking, which has been a long-standing partner in integration projects, is set to address these issues by offering an integration hub that streamlines operations and aligns data across banking systems. With a robust gross profit margin of 60.25%, nCino demonstrates strong operational efficiency in its existing business model.

Chris Gufford, Chief Product Officer at nCino, highlighted the acquisition’s potential to improve transparency, reduce integration friction, and accelerate project timelines. The integration hub is designed to provide a single source of truth, supporting transparency and regulatory requirements, while eliminating manual data entry and reducing technology debt.

Ravi Balasubramanian, CEO & Co-founder of Sandbox Banking, expressed enthusiasm about joining forces with nCino to provide financial institutions with practical tools for growth and enhanced customer experiences. The combined resources of both companies are expected to yield benefits such as accelerated deployment, pre-built adapters for core banking platforms, and AI services that save significant integration and API development time.

Brian Mulcahey, Chief Information Officer at Sunflower Bank, attested to the operational efficiency gains from the nCino and Sandbox Banking integration, stating it has minimized errors and allowed the bank to focus on customer service.

The acquisition is part of nCino’s broader strategy to empower financial institutions with intelligent solutions, integrating AI and actionable insights to consolidate legacy systems and enhance strategic decision-making.

This news is based on a press release statement and provides an overview of the anticipated benefits for nCino’s customers following the acquisition of Sandbox Banking. While currently not profitable over the last twelve months, InvestingPro analysts expect nCino to achieve profitability this year, with several additional growth indicators available in the comprehensive Pro Research Report, which provides deep-dive analysis of 1,400+ top US stocks including nCino.

In other recent news, nCino, a cloud-based banking software provider, has seen a series of significant developments. nCino recently expanded its Board of Directors with the appointment of Justin Nyweide, Founding Partner and Chief Investment Officer at HMI Capital. This appointment is part of a Cooperation Agreement with HMI Capital, a significant shareholder of nCino.

On a different note, JMP Securities reiterated its Market Outperform rating on nCino, maintaining a steady price target of $43.00. The firm’s analyst projected revenues of $540.4 million for fiscal year 2025, representing a year-over-year increase of 13%. Adjustments were made to the forecasts for the following years, with revenue expectations for fiscal year 2026 trimmed to $603.4 million.

In a leadership transition, nCino named Sean Desmond as its new President and Chief Executive Officer, succeeding Pierre Naudé, who will remain as Executive Chairman of the Board. Desmond, who joined nCino in 2013 and most recently served as Chief Product Officer, will focus on leveraging the company’s data and AI capabilities to drive growth.

Lastly, Barclays (LON:BARC) analyst Saket Kalia upgraded nCino’s stock from Equalweight to Overweight, establishing a price target of $44.00. The upgrade is based on anticipated improvements for nCino’s bank customers, a new platform pricing model expected to accelerate revenue recognition, and the company’s current trading at a discount compared to other vertical SaaS leaders.

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