Summit Partners and Vista Equity Partners are reportedly considering the sale of Trintech, a financial software provider based in the US and originally founded at Trinity College in Dublin, Ireland. The potential sale is expected to value Trintech at approximately $2bn, including debt, according to a report by Reuters, citing sources familiar with the situation.
The sale process is being managed with the assistance of Deutsche Bank, with investment bankers working closely with Summit Partners and Vista Equity Partners. The process is anticipated to attract interest from other private equity firms, though specific details of the discussions remain confidential, according to the sources.
Trintech’s raison d’etre
Trintech specialises in providing cloud-based software solutions that automate reconciliation and financial close processes. Headquartered in Texas, the firm generates around $200m in annual revenue, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) estimated at about $90m. The company’s owners are reportedly seeking a valuation that exceeds 20 times its core earnings.
The company offers a range of platforms tailored to various organisational needs. These include Cadency, designed for large enterprises to integrate all Record to Report activities into a single process, and Adra, which is aimed at mid-sized organisations to automate critical financial close tasks.
Additionally, Trintech offers CadencyDirect on ServiceNow, a platform built specifically for the ServiceNow ecosystem to meet the unique requirements of finance departments, and ReconNET, a reconciliation platform that automates the reconciliation lifecycle to enhance operational efficiency. Trintech also provides DATAFlow, a solution for the efficient acquisition of daily data, and Frontier, which automates the reconciliation lifecycle to reduce risk.
Expanding client base
These platforms have enabled Trintech to build a substantial client base, serving approximately 4,200 organisations across industries such as retail, technology, and manufacturing. Notable clients of Trintech include Toyota Motor and the Dallas Cowboys.
In 2023, Trintech expanded its operations by acquiring Fiserv’s Frontier Reconciliation and Accurate Reconciliation software solutions. Through the deal, Trintech added 400 new clients to its portfolio. Summit Partners acquired a majority stake in Trintech in January 2018 from Vista Equity Partners, which had first invested in the company in 2015 and continues to hold a stake.
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