- Alkami has entered into a definitive agreement to acquire financial analyst firm Segmint for $135.5 million in cash.
- The acquisition will combine Segmint’s data insights with Alkami’s digital account opening and digital banking technology.
- Both companies are Finovate alumni. Alkami debuted in Finovate as iThryv in 2009. Segmint made his final Finovate appearance at FinovateFall in 2012.
Another day, another big acquisition in the fintech space. Today we learned that the provider of cloud-based digital banking solutions Alkami Technology at agreed to acquire Segment, a specialist in financial data analysis and transaction cleaning. Alkami will pay $135.5 million in cash for the Cuyahoga Falls, Ohio-based company and expects its total addressable market to grow by $1 billion from the acquisition.
“Our clients want to deepen their relationships with their customers and increase their revenue,” said Allkami CEO Alex Shootman. “To do this, they need to transform raw account and transaction data into insights that lead to highly personalized communications. Segmint applies machine learning to transaction data to help FIs better understand their account holders and automates messaging with incredible accuracy and personalization across multiple channels.
The acquisition will enable Alkami’s partner financial institutions to benefit from the combination of datasets from Alkami and Segmint. In addition to providing a more comprehensive view of account holders, the combination will also bring greater accuracy and additional use cases to Segmint’s data models. Additionally, financial institutions will be able to use this data to leverage digital banking services to better target, engage and build relationships with customers.
Approved by the boards of both companies, as well as Segmint shareholders, the acquisition is expected to close in the second quarter of this year – assuming regulatory approvals and customer closing conditions are met.
As we noted, the Alkami/Segmint acquisition is the second major fintech acquisition involving a Finovate alumnus this week. We reported yesterday that Canadian identity verification company – and Finovate Best of Show winner – SecureKey – agreed to be acquired by digital security and privacy company Avast.