• Has capacity to increase pace of acquisitions
• Could consider larger transaction like a credit union core
• Deal pipeline starting to improve

CSI is pursuing opportunistic M&A to expand commercial deposit and payments capabilities, CEO Nancy Langer said.

The Paducah, Kentucky-based financial software provider expects to continue acquiring roughly one asset per year, though it has the capacity to do more if attractive opportunities arise, Langer said. It is prioritizing acquisitions that add strength in business digital banking, commercial deposits, small-business capabilities, and payments optimization, she added.

Langer took the helm in May after most recently serving as CEO of Transact Campus, which was acquired last year by Roper Technologies. CSI recently hired a chief strategy officer to lead deal execution.

While most targets will be small or mid-sized, CSI could opportunistically consider larger or transformational transactions such as purchasing a credit union core if one came to market, Langer said. The company has been increasingly selling to larger community banks as well as banks with USD 1bn to USD 2bn or more in assets, she explained.

CSI wants to give its bank customers a payments infrastructure such as intelligent and risk-based routing as well as payment flow optimization, she added.

The deal pipeline remains slower than three to four years ago but has improved compared with last year, according to Langer.

CSI reported double-digit revenue growth in 2024, she said, declining to provide specifics. Multiples in the financial software sector could range from 8x EBITDA up to 14x–16x EBITDA, Langer added.

The company can finance deals with cash and its revolving credit facility, and it assesses deals case by case, Langer said. She declined to say if CSI was planning to raise additional capital.

It was taken private in 2022 by Centerbridge and Bridgeport in a deal valuing CSI at approximately USD 1.6bn. TA Associates joined as a minority investor in 2024, with Centerbridge retaining majority ownership. Langer declined to confirm current allocations or comment on its latest valuation. It is too soon for exit conversations, she added.

CSI, which primarily serves US-based banks, has 515 core customers and around 2,500 customers that use at least one of its other solutions, Langer said. Its NuPoint platform is the second-most used US core banking system, competing with offerings from Fiserv, FIS, and Jack Henry, Langer said.

The company has made three acquisitions since going private: community banking software firm Hawthorn River in December 2023, account management provider Velocity Solutions in September 2024, and Apiture in August.

Langer said she’d known of Apiture for years, and the company was exploring a sale when she joined CSI. CSI was looking to beef up its business digital banking, which Apiture will do along with enhancing its predictive analytics capabilities.

The company participated in a few bid rounds, Langer said, declining to provide additional detail. Its purchase of Apiture is expected to close in about two months, she said.

CSI, which has about 1,200 employees, has used Kirkland & Ellis for legal services, among others. It has used Deloitte and RSM for various accounting services.

by Rachel Stone