Alkami Acquires MANTL for $400 Million to Bolster Digital Banking Platform

Deal News | Feb 27, 2025 | Endicott Capital

Alkami Acquires MANTL for $400 Million to Bolster Digital Banking Platform

Alkami Technology, Inc., a leading U.S.-based provider of cloud-based digital banking solutions, has announced a definitive agreement to acquire Fin Technologies, Inc., known as MANTL, for an enterprise value of $400 million. The acquisition seeks to enhance Alkami's digital sales and service platform by integrating MANTL's advanced account opening solutions, which empower financial institutions with robust automation capabilities. This strategic move, funded by cash and restricted stock units, further cements Alkami’s status as a key player in digital banking, allowing it to offer a comprehensive suite of solutions aimed at speeding up the onboarding of new customers while deepening relationships with existing clients. MANTL, founded in 2016, is recognized for its efficient account origination technology, significantly reducing account opening times for both retail and business customers. The acquisition is anticipated to close by the end of March 2025, subject to customary conditions, and discussions regarding this strategic acquisition will take place during Alkami's upcoming earnings call. The merger of the two companies promises to enhance growth opportunities, expand market share, and strengthen the competitive edge of Alkami's offerings in the financial technology space.

Sectors

  • Financial Technology
  • Banking and Financial Services

Geography

  • United States – Both Alkami and MANTL are based and operate primarily within the U.S. financial market, which is the primary region impacted by this acquisition.

Industry

  • Financial Technology – This industry involves the digitization of financial services, which is relevant as both Alkami and MANTL operate within this space, providing digital banking solutions and account origination technologies.
  • Banking and Financial Services – Relevant as the acquisition focuses on providing enhanced banking services such as digital account opening and customer engagement solutions to financial institutions.

Financials

  • $400 million – The enterprise value for the acquisition of Fin Technologies, Inc. (MANTL) by Alkami.
  • $380 million – The approximate cash consideration Alkami plans to use to fund the acquisition.
  • $13 million – The estimated value of restricted stock units to be issued to continuing MANTL employees as part of the acquisition.

Participants

NameRoleTypeDescription
Alkami Technology, Inc.Bidding Company/BuyerCompanyA leading provider of digital banking solutions aiming to expand its platform by acquiring MANTL.
Fin Technologies, Inc. (MANTL)Target CompanyCompanyA fintech firm specializing in account origination technology for banks and credit unions.
Endicott CapitalPrivate Equity FirmCompanyThe private equity firm providing backing to Alkami.
Nathaniel HarleyMANTL Co-founder and CEOPersonCo-founder of MANTL, providing leadership and vision for the company's strategic direction.
Alex ShootmanAlkami CEOPersonCEO of Alkami overseeing the strategic acquisition of MANTL.