Irish fintech Fenergo valued at over $1bn after $600m deal

Dublin-based company achieves unicorn status after surpassing $1bn valuation

Fenergo chief executive Marc Murphy. Photograph: Alan Betson / The Irish Times

Fenergo chief executive Marc Murphy. Photograph: Alan Betson / The Irish Times

 

Fintech company Fenergo has become the State’s third official Irish tech unicorn after being valued at over $1 billion in a new deal, according to industry sources.

Fenergo follows in the footsteps of Intercom and Workhuman in being awarded unicorn status after selling a majority stake in the business for $600 million. Industry sources estimate that the deal values Fenergo at $1.165 billion (€963.35 million).

London-based Bridgepoint, an alternative asset fund management group with assets of €26 billion under management, and French private equity group Astorg, have joined together to buy out stakes previously owned by Insight Venture Partners and DXC.

Insight had a 55 per cent stake in Fenergo, having invested $75 million in the fintech in 2015. DXC had a 10 per first shareholding, having first backed the company in 2019 and topping that up a year later.

As part of the transaction founder and chief executive Marc Murphy, who has a 10 per cent stake in Fenergo, is believed to have reinvested as have other senior executives.

The company could not be reached for comment but it is believed staff have recently been informed of the transaction.

Fenergo works with 300 of the largest banks and insurers in the world, including ABN Amro, Aviva, Bank of China, Danske Bank, Credit Suisse, UBS, Santander and State Street.

New sectors

Founded in 2008, it develops software for financial institutions that helps them with issues such as regulatory compliance and managing client data. In recent years it has also expanded into new sectors such as asset and wealth management.

The company, which employs about 1,000 people, had been linked with an initial public offering (IPO) prior to the deal, something that Mr Murphy has previously said he is keen to see happen at some point.

Mr Murphy recently forecast revenues of about €95 million for the 12 months to the end of March 2021, up from €78.3 million for the prior year. He told The Irish Times recently that the company is looking at a number of potential acquisitions as it seeks to scale more quickly, with plans to hit revenues of $250 million by 2023.

Fenergo, which was spun out of Irish tech veteran John Purdy’s Ergo Group, last year closed an $80 million investment round that valued it at $800 million, with backers that included Dutch bank ABN Amro.

In 2020, Fenergo was named Irish technology company of the year at the Technology Ireland awards.