H.I.G. Growth Partners News
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Velocity Solutions, an H.I.G. Capital Portfolio Company, Completes the Acquisition of BSG’s Overdraft Software Offering
MIAMI – August 21, 2018 – H.I.G. Capital, LLC (“H.I.G.”), a leading global private equity investment firm with over $25 billion of equity capital under management, is pleased to announce that one of its portfolio companies, Velocity Solutions (“Velocity” or the “Company”), the leading provider of revenue enhancement solutions to regional and community financial institutions, has completed the acquisition of CourtesyConnect/CourtesyLimit, the automated overdraft management system provided by CourtesyCloud Management Solutions, LLC (“CourtesyCloud”), a BSG Financial Group company.
CourtesyConnect is the industry’s first cloud-based courtesy overdraft management system. The software and processes allow financial institutions of all sizes to automate their overdraft service and manage it as a line of business – for enhanced account holder experience, compliance and revenue. CourtesyLimit is the risk management component of the system. It provides innovative data analysis capabilities to create dynamic overdraft limits tailored to an individual's repayment capacity.
“This acquisition establishes Velocity Solutions as the industry’s unrivaled leader in automated overdraft management solutions using dynamic limits,” said Christopher Leonard, CEO of Velocity. “The addition of CourtesyConnect/CourtesyLimit to our existing product suite creates the industry’s most powerful overdraft management product set. This acquisition allows us to provide our overdraft solutions to a broader base of financial institutions, including those who are seeking a cloud-based solution.” Leonard continued, “We are better equipped than ever to help financial institutions of all sizes achieve the optimal balance of revenue, service and compliance – the three essential pillars of a complete and proactive overdraft management system.”
“Velocity Solutions is a seasoned veteran in the overdraft space. For years, we’ve coexisted in the industry as peers, with very similar goals of offering compliant and consumer-centric solutions, developing consultative relationships with our clients, and continuous innovation of our software, systems and processes,” said W. Barrett Nichols, Founder and Chief Executive Officer of BSG Financial Group. “This acquisition creates the opportunity to provide enhanced overdraft product offerings and unrivaled service to our combined client base, as well as to other prospective financial institution customers.”
"We are pleased to support Velocity in its strategic acquisition of CourtesyCloud," commented Keval Patel, a Managing Director of H.I.G. Capital. “In addition to further enhancing our existing overdraft management capabilities, the acquisition enables cross-selling of other Velocity solutions to a new customer base and adds talented individuals to the Velocity team. This acquisition solidifies the Company’s position as the industry’s leading overdraft management provider.”
CourtesyCloud is the second add-on acquisition that Velocity has completed since H.I.G. acquired the Company in December 2017. Velocity also acquired Akouba in June 2018 as a new strategy to enter the growing digital lending market by enabling financial institutions to offer loans to small and medium-sized businesses.
For more information, please contact Velocity Solutions at firstname.lastname@example.org.
About Velocity Solutions, LLC
Velocity Solutions is the leading provider of digital revenue enhancement solutions to regional and community banks and credit unions. Founded in 1995 and servicing the transaction accounts of over 25 million consumers and business owners, Velocity has unparalleled expertise and insight into deposit account activity and transactional trends. Velocity’s solutions are designed to automate overdraft services, drive new profitable accounts, provide digital consumer and business lending platforms, generate new non-interest income, and address regulatory scrutiny. For more information, please visit www.myvelocity.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over $25 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused / value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.