WILMINGTON, N.C. and LONDON – nCino, Inc. (NASDAQ: NCNO), a provider of banking software solutions, today announced the acquisition of FullCircl, a UK-based SaaS company specializing in client lifecycle management for financial institutions. The deal, valued at $135 million, aims to bolster nCino's capabilities in automating and enhancing the customer onboarding process and lifecycle management for commercial banks in the UK and Europe.
FullCircl's platform is designed to help banks grow revenue, automate onboarding, and navigate regulatory challenges. Its integration with nCino's platform began in 2023, aiming to improve the efficiency and compliance of client acquisition and service. The partnership has already seen adoption among various financial institutions, from large UK banks to neobanks.
The acquisition brings a sophisticated business rules-engine to nCino, simplifying the complexity of onboarding and providing access to an extensive graph-database of company data. This includes insights, financial information, credit scores, and risk profiles, all crucial for informed decision-making and risk management.
Pierre Naudé, Chairman and CEO at nCino, emphasized the strategic nature of the acquisition, stating it would enhance data and automation capabilities and expand the company's European footprint. Andrew Yates, CEO and Co-founder of FullCircl, highlighted the alignment between the two companies in vision, culture, and market opportunity.
nCino plans to discuss the financial impact of this acquisition in its upcoming third quarter earnings release. The company, with over 1,800 customers globally, continues to integrate artificial intelligence and actionable insights into its platform, aiming to consolidate legacy systems and improve financial services.
The transaction includes a clause where $15 million of the purchase price will be retained by nCino for two years post-closure as a security for the performance of certain warranties and covenants. This acquisition marks a significant step for nCino in its mission to drive innovation in the financial services industry.
The information in this article is based on a press release statement.
In other recent news, nCino Inc. has been making significant strides. The cloud banking provider reported strong second quarter fiscal year 2025 results, with total revenues reaching $132.4 million, subscription revenues of $113.9 million, and non-GAAP operating income of $19.3 million. Despite a slowdown in Remaining Performance Obligations growth, nCino's management remains confident in achieving its 50% net booking growth target by fiscal year 2025.
In addition to its financial achievements, nCino has also seen recent legal and operational successes. The Delaware Supreme Court has affirmed the dismissal of a stockholder lawsuit related to the company's mergers with nCino OpCo and SimpleNexus. Furthermore, nCino has integrated its Commercial Banking Solution into the business lending services of Tokushima Taisho Bank, as part of the bank's commitment to digital transformation and customer value reform.
Analysts have been optimistic about nCino's prospects. Truist Securities raised its stock price target for nCino from $37.00 to $44.00, maintaining a Buy rating due to the potential of nCino's AI-powered Banking Advisor. Raymond James upgraded nCino from Market Perform to Outperform, while Macquarie, Piper Sandler, and Keefe, Bruyette & Woods maintained their positive ratings. These are the recent developments surrounding nCino, Inc.
InvestingPro Insights
nCino's acquisition of FullCircl aligns with the company's growth strategy and its focus on enhancing its product offerings. According to InvestingPro data, nCino's revenue growth stands at 13.64% over the last twelve months, indicating a steady expansion trajectory. This acquisition could potentially accelerate this growth rate by broadening nCino's market reach in Europe and enhancing its product capabilities.
InvestingPro Tips highlight that nCino's net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook could be partially attributed to strategic moves like the FullCircl acquisition, which aims to improve nCino's competitive position and expand its revenue streams.
The company's strong recent performance is reflected in its stock price, with InvestingPro data showing a 21.62% price return over the last month and a 31.76% return over the past six months. This upward momentum aligns with the company's strategic expansion and could be further bolstered by the potential synergies from the FullCircl acquisition.
It's worth noting that nCino is trading near its 52-week high, with a price that is 99.4% of its 52-week peak. While this indicates strong investor confidence, an InvestingPro Tip suggests that the stock's RSI indicates it may be in overbought territory, which investors should consider in their analysis.
For those interested in a deeper dive into nCino's financials and future prospects, InvestingPro offers 13 additional tips, providing a comprehensive view of the company's position and potential.
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