NEC Corporation (TSE: 6701) today announced that Banqsoft, a Norway-based company specialized in software for the financial services sector and subsidiary of KMD, a Denmark-based subsidiary of NEC, has entered into an agreement to acquire Norwegian software company Concent. The acquisition will enhance Banqsoft’s capabilities, offer an additional product line within credit management and debt collection, and expand the customer base. The strategic acquisition is part of an international growth strategy supported by Banqsoft’s owner, Danish IT group KMD, part of NEC, a global leader in the integration of IT and network technologies. Banqsoft will take over customer relations, software and 85 employees located in Norway, Poland and Sweden. The two companies will join forces and continue to grow as one Banqsoft.
Banqsoft, a fast-growing Nordic FinTech player, is aiming at further growth and business development.
Within the last couple of years, Banqsoft’s business has grown by around 20% per year, and earlier this year the company, in line with its strategic ambitions, acquired part of the Danish software company E Foqus, including leasing activities and assets related to the Foqus Finance product.
Banqsoft is now making another strategic move in acquiring Concent to complement its current operations and expand its position within the credit management software market segment.
“The acquisition of Concent fits perfectly with our strategic growth plan,” says Terje Kj’s, CEO, Banqsoft. “Concent has highly skilled employees with great domain knowledge and a very modern and complementary product line within the credit life cycle that completes our customers’ needs. The acquisition also adds interesting new customers to our portfolio. It’s a clear-cut strategic fit, and we’re delighted that Concent is now becoming part of Banqsoft.”
“Over the years, Concent has shown significant growth and profitability. The company has proven to be an attractive partner for large actors in the international FinTech industry. The new industrial Banqsoft/KMD ownership of Concent will strengthen the strategic position of the business and represent a strong basis for further growth,” says Thor Eika, Concent chair and Group Executive in Treschow-Fritzøe, which is selling its 51% shareholding in Concent.
Concent is specialized in software and services within credit management and debt collection and has a strong market position in the Nordic segments, with 144 municipalities, 100 collection agencies, and several banks and finance companies as customers.
Banqsoft will take over customer relations, software and 85 employees located in Norway, Poland and Sweden. Concent will be operated as an integrated business line in Banqsoft. The strong Concent management team will be retained at Banqsoft, and the product brand and investments in the product suite from Concent will continue.
New possibilities for all parties
Banqsoft and Concent have many similarities. Both started in Norway, have expanded throughout the Nordics, and have ambitions to further expand in international markets for financial services software.
“Becoming part of Banqsoft will lift the potential for Concent,” says Oddbjørn Bergem, CEO, Concent. “Both companies are successful in a growing market and joining forces will leverage the strategic possibilities and give our customers a supplier with even broader capabilities and muscles. Our employees will also benefit from joining a larger organization with a powerful support base in the KMD Group and its mother company, the global NEC Corporation.”
Supporting international ambitions
Banqsoft is a key player in the Nordic market segments for financial services software solutions, including digital banking and asset finance. This new constellation with Concent on board will open new growth possibilities across the Nordics and beyond.
“We’ve seen very good development for Banqsoft for a while now,” says Per Johanson, Chairman, Banqsoft, and Executive Vice President, KMD. “Through the acquisition of the Danish strongly positioned leasing product Foqus Finance earlier this year and now Concent, we’re underlining and supporting our strong ambitions and decision to execute on the international growth strategy. The financial services software sector has large potential, and we have faith in our solutions and the proof we need to take additional steps. Banqsoft and Concent already have customers in a variety of countries, but we want to accelerate and continue the development, which the new strengthened positioning will support. We’re also convinced that the combination of different solutions that support the whole retail finance life cycle makes a lot of sense for our customers.”
Banqsoft’s acquisition of Concent is expected to be completed in September once all the preconditions for the transaction are satisfied.
Aabø-Evensen and PwC have been advisers to Banqsoft and KMD in the process.