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Friday, May 24, 2024

Wilmington’s nCino buying DocFox for $75 million

Wilmington’s nCino, a cloud service for financial services companies, agreed to pay $75 milllion to acquire DocFox, which helps automate onboarding systems for commercial and business banking.

nCino will use funds available under its Bank of America credit line for the deal, according to a Securities and Exchange Commission filing on Monday.

By integrating Miami-based DocFox into nCino’s service, the company will help financial institutions to manage the client process of collecting information, document collection and due-diligence on a single platform. DocFox helps institutions condense complicated onboarding processes from weeks to days or even hours.

nCino CEO Pierre Naudé said the acquisition fits the company’s “buy, build or partner” philosophy. And he said combining the two companies solves a significant problem across the market by simplifying and automating the complexities of these processes.

“We take into consideration whether a solution or product is something we would build, whether we buy it, or whether we partner with another company and develop an integration,” said Naudé in an email to Business North Carolina. “We always monitor the markets and look at potential opportunities from this strategic lens, remaining prudent and opportunistic in our approach.”

Naudé adds that nCino will continue to look for other deals. “We are steadfast in our commitment to innovative transformation within the financial services industry,” he said in the email.

A former S1 and Unisys executive, Naudé helped found the cloud-banking firm in 2012 and led the 2020 IPO that valued the company at $3 billion. Its market cap now is about $3.4 billion.

While revenue gained 48% to $408 million in 2023, the company reported a net loss of $102.7 million.

DocFox was founded in 2016 and has more than 450 customers across three continents.

The acquisition is expected to close this month.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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