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Fenergo valued at $800m after fresh investment by ABN Amro


Cash injection: Dutch bank ABN Amro has contributed to a funding round for Fenergo

Cash injection: Dutch bank ABN Amro has contributed to a funding round for Fenergo


Cash injection: Dutch bank ABN Amro has contributed to a funding round for Fenergo

Fenergo has completed a two-step funding round that values the Irish banking technology firm at a mammoth $800m (€735m) barely a decade after its foundation by Marc Murphy.

The Dublin-based firm confirmed yesterday that ABN Amro had followed New York-based DXC Technology in contributing to a round totalling $80m.

Together, Fenergo said, the new investors have gained a combined 10pc equity stake in the firm.

This means Fenergo's value has soared by more than 700pc since 2015, when New York venture capital firm Insight Partners invested $75m to acquire a 65pc stake that valued it at that time at $110m.

The firm is eyeing a potential Nasdaq initial public offering within the next two years as it expands its client base in Asia, Europe, North America and Australia.

While ABN Amro yesterday did not confirm the size of its investment, it is understood to total €5.5m. Fenergo in June 2019 filed accounts showing that DXC Technology had invested €66m, equivalent to $74m at the time.

Fenergo, a regulatory software and data specialist, today employs about 800 people - half in Dublin, the rest at 13 locations overseas, including its newest bases in Melbourne and Dubai. The size of its workforce has tripled in just two years.

Its products support anti-money laundering and other compliance checks by a majority of the world's 50 biggest banks, as well as the efficient "onboarding" of new customers.

"We are delighted to join ABN Amro Ventures and DXC Technology's investment portfolio. Their pedigrees, deep experience and industry knowledge make them both ideal investment partners for Fenergo," Mr Murphy said.

"Ultimately, we exist only to serve the needs of our customers. Our goal is to ensure they can digitally transform, be regulatory assured and able to deliver award-winning customer experiences."

ABN Amro Ventures director Hugo Bongers said: "This investment will contribute to ABN Amro's strategic priority to build a future-proof bank and fight financial crime."

"We are impressed with the management team and solution Fenergo offers," he continued. "In addition, this gives us additional exposure to a group of tier-one investors."

Insight Partners retains more than 50pc of equity. BNP Paribas is another investor. Management and staff own the rest.

In the past year, Fenergo has gained more than a dozen global banking clients, including Banc of California, National Australia Bank, Canadian Imperial Bank of Commerce, UBS Asset Management, Anglo Gulf Trading Bank, Royal Bank of Canada, First Abu Dhabi Bank, Tricor, Exos Financial and Mizuho.

In December, Fenergo reported a 21pc gain in revenue to €70m for the year ending March 31.

Sales of services rose by 15pc to €43.6m, software by 35pc to €20.7m, and support and maintenance by 29pc to €5.8m.

An 117pc hike in R&D spending produced an operating loss of €5.4m.

Indo Business