Cloud banking vendor nCino explores sale -sources

nCino

16/06/2023 20:15

By Milana Vinn and David French
       June 16 (Reuters) - nCino Inc  NCNO.O , which offers
cloud-based software to banks, is exploring its options,
including a potential sale, after attracting takeover interest
from private equity firms, people familiar with the matter said
on Friday. 
    The board of directors of nCino, which has a market value of
about $2.9 billion, has been in talks about forming a special
committee to review the expressions of interest in a deal and
decide on its next steps, the sources said.
    Insight Partners, a private equity firm that owns about 35%
of nCino, has not yet decided whether it will participate in any
potential deal or simply cash out, the sources added. 
    The sources cautioned that no deal is certain and asked not
to be identified because the matter is confidential.
Spokespeople for nCino did not immediately respond to requests
for comment, while Insight Partners declined to comment.
    Based in Wilmington, North Carolina, nCino offers
cloud-based software to banks and financial institutions that
helps digitize their processes, including around lending and
deposit-taking. It was spun out off North Carolina-based Live
Oak Bancshares  LOB.N  in 2011.
    The company subsequently attracted several venture capital
investors beyond Insight Partners, including Wellington
Management, Salesforce Ventures, Bessemer Partners and T. Rowe
Price.
    It listed in the stock market in July 2020. Its shares have
since lost 20% of their value as its struggled to turn a profit.
    The company reported in March, however, that its revenue in
the fourth-quarter of fiscal 2023 rose 46% to $109.2 million,
driven by a 53% increase in subscription revenue.

 (Reporting by Milana Vinn and David French in New York; Editing
by Daniel Wallis)