Portfolio Company UpdateOctober 11, 2023TA Associates Joins OceanSound Partners to Accelerate Growth and Innovation at Kinective

Kinective, a leading provider of connectivity, workflow, and analytics software for the banking sector, today announced that it will receive a strategic investment from TA Associates (“TA”) and existing investor OceanSound Partners (“OceanSound”). This transaction will enable Kinective to bolster product innovation, increase investment in sales and support resources, and deliver enhanced value to its customers. Upon completion of the transaction later this year, TA and OceanSound will become equal partners in Kinective. Terms of the transaction were not disclosed.

Kinective was formed in June 2023 through the combination of CFM, NXTsoft, and IMM, three fintech companies that together provide API connectivity, workflow automation, and data analytics software. The Company delivers the most comprehensive, open, and connected technology ecosystem in banking, helping financial institutions unlock new services, modernize operations, and elevate client experiences. Across offices in Phoenix, Orlando, and New Jersey, Kinective’s 275 team members serve more than 2,500 banks and credit unions, representing one out of every four U.S. financial institutions.

“We are thrilled to partner with TA and OceanSound as we enter this next phase of growth,” said Stephen Baker, CEO of Kinective. “Over the past year, we have integrated our three constituent businesses and made sizeable investments in our people and systems to support our expanded scale. During this time, we have empowered our customers with the freedom to transform at their own pace with bespoke fintech solutions. With TA’s extensive experience scaling software companies and OceanSound’s proven operational capabilities, we are better equipped to achieve our mission of helping customers connect to banking’s future.”

“Kinective is a force multiplier in banking, enabling access to innovation so financial institutions can reduce time-to-market of new technology, lower operating costs, build connected experiences, and delight their clients,” said Hythem El-Nazer, Managing Director, and Mike Libert, Managing Director at TA. “We believe there is considerable opportunity to unlock further value for Kinective’s customers through product investments, new partnerships, and strategic acquisitions. We are pleased to join OceanSound as partners in Kinective and look forward to leveraging TA’s software expertise and global add-on acquisition and integration capabilities to drive sustained growth.”

“Since we began our partnership in December 2021, Kinective has undergone significant transformation and more than tripled its revenues, outpacing our growth expectations,” said Ted Coons, Partner, and Parin Shah, Principal at OceanSound. “Over this time, we have helped the Company transform its go-to-market strategy, expand its customer base, and strengthen its product suite via organic initiatives and two strategic acquisitions. We are excited about the next chapter of Kinective. TA and OceanSound’s combined value-add capabilities will ensure the management team is equipped with substantial resources to bring additional products and functionality to customers.”

“Our investment in Kinective reflects OceanSound’s approach of partnering with founder-owned companies to drive value creation through organic growth initiatives and add-on acquisitions,” said Joe Benavides, Managing Partner at OceanSound. “Kinective is well-positioned to sustain its rapid expansion and meet the increasing demand for digital transformation solutions in the banking sector. We believe that TA is the best partner who can augment our efforts to help the Company accelerate its impressive growth potential.”

Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to Kinective and OceanSound. Goodwin Procter LLP provided legal counsel to TA Associates.

About Kinective
Kinective is a leading provider of connectivity, workflow, and analytics software to more than 2,500 banks and credit unions in North America. Kinective was created in June 2023 as the new brand uniting CFM, NXTsoft, and IMM, three complementary financial technology companies that together have over 70 years of experience in banking. Kinective provides financial institutions with access to innovation, helping them unlock new possibilities and connect to the future. Kinective is a portfolio company of OceanSound Partners. For more information, please visit www.kinective.io.

About TA
TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries – technology, healthcare, financial services, consumer, and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai, and Hong Kong. More information about TA can be found at www.ta.com.

About OceanSound Partners
OceanSound Partners is a New York-based private equity firm that pursues control investments in technology and technology-enabled services companies serving government and enterprise end markets. OceanSound employs a partnership approach, working closely with founders, entrepreneurs, and executives of middle market businesses to drive transformational growth. For more information, please visit www.oceansoundpartners.com.