Alkami Technology, Inc. (Nasdaq: ALKT), a cloud-based digital banking solutions provider for U.S. financial institutions, has entered a definitive agreement to acquire Segmint Inc., a leader in making account and transaction data usable and meaningful for FIs to deepen customer relationships and grow revenues.
The acquisition is expected to benefit FIs in two ways. First, combining the data sets of Alkami and Segmint will provide a more complete view of the account holder while both training Segmint's current data models for greater precision and expanding them to additional use cases. Second, FIs will be able to use this data to target, engage, and grow customer relationships through their most pervasive and efficient channel—the digital banking experience.
The acquisition is expected to expand Alkami's total addressable market by approximately $1 billion and enable new cross-selling opportunities across a larger installed base.
The transaction has been approved by the boards of directors of both companies and the stockholders of Segmint and is expected to close during the second quarter of 2022 subject to regulatory approval and customary closing conditions. Consideration will consist of $135.5 million of cash payable upon closing. Based on a transaction close date of June 30, 2022, Alkami expects Segmint to contribute approximately $7.0 million of revenue and an immaterial amount of adjusted EBITDA to its 2022 full-year financial performance. Alkami expects Segmint's annual recurring revenue under contract at December 31, 2022 to be in the range of $15 to $17 million, which represents a growth rate of 30% to 50% when compared to the same metric as of December 31, 2021.
Financial Technology Partners served as the exclusive financial and strategic advisor to Segmint.
