The M&A opportunities in SaaS and fintech with Trintech's Omar Choucair
Aug 30, 2023
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Trintech CFO, Omar Choucair, talks about the recent acquisition of Fiserv's reconciliation businesses. They discuss the opportunities and challenges of M&A in SaaS and fintech, and the market outlook for the remainder of this year into 2024.
Trintech recognized the banking and financial institution insurance market as a promising sector for their services and made an acquisition of Pfizer's reconciliation business to tap into this opportunity.
Despite slow M&A activities, Trintech saw the acquisition as a chance to acquire a blue-chip customer list, excellent technology, and competent employees, outweighing concerns about timing and market volatility.
Deep dives
Trintech's Role in Streamlining CFO Processes
Trintech is a SaaS software company that offers solutions to streamline manual and mundane tasks faced by CFOs. With the increased pressure on CFOs due to COVID and lack of competent personnel, Trintech's software aims to simplify tasks involved in closing books. They primarily target two segments: enterprise and commercial, with their products Cadency and Accurate. Cadency caters to large enterprises, including half of the Fortune 100 companies globally. Trintech recently made an acquisition of Pfizer's reconciliation business, recognizing the banking and financial institution insurance market as a promising sector for their services.
The Timing of Trintech's Acquisition
Trintech had been actively seeking the right acquisition for several years before successfully acquiring Pfizer's reconciliation business. Although M&A activities had been slow due to valuation uncertainties and market volatility, Trintech saw this as an opportunity to acquire a blue-chip customer list, excellent technology, and competent employees. Utilizing their strong relationships with investment bankers and investors, Trintech completed the transaction, even in a high-interest rate environment. They believe that despite the current conditions, being well-prepared and aligning with their core business model outweighed the timing concerns.
Challenges and Opportunities in the Deal-Making Process
Trintech faced various complexities in the acquisition, including a carve-out transaction, which involved acquiring the customer list and employees while taking on the back-office work. However, Trintech's robust tech stack and readiness to integrate new revenue streams and personnel allowed them to navigate these challenges smoothly. The deal signaled a positive shift in the market, indicating increased recognition among CFOs for the ROI and the need for automation in mundane accounting tasks. Trintech's expertise in automating manual processes and simplifying complex business processes positions them favorably for the massive $20 billion TAM market they operate in.
Trintech, a global provider of cloud-based financial close solutions for CFOs and their teams, announced the acquisition of Fiserv’s reconciliation businesses in North America and EMEA.
The deal comes at a time of relatively low M&A activity in the broader software vertical and, of course, sustained high interest rates. That said, it’s also happening within a segment that has an estimated value of over $20b.
Join Tearsheet's editor and chief, Zack Miller, and Trintech CFO, Omar Chocuair, as they discuss why his team chose to make this acquisition now. We also chat about the opportunities and challenges of M&A in the SaaS and financial tech spaces, and the market outlook he has for the remainder of this year into 2024.
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