CFM and NXTsoft Announce Strategic Combination

TEMPE, Ariz. & BIRMINGHAM, Ala.--(BUSINESS WIRE)--OceanSound Partners, a growth-oriented private equity firm, today announced that its portfolio company, CFM, has merged with NXTsoft. The combination creates the leading provider of API connectivity, workflow automation, and data analytics software for financial institutions. Simultaneously, NXTsoft completed its previously announced separation from ThreatAdvice, a cybersecurity solutions business. Terms of the transaction were not disclosed.

Together, CFM and NXTsoft deliver API solutions to over 1,800 banks and federal credit unions in North America. CFM integrates teller applications with branch hardware, creating modern banking experiences. NXTsoft helps its customers secure, connect, and optimize their data through integration flows that connect over 75 software applications to over 40 core processors. All products currently offered by both businesses will remain available and supported under their existing brands.

Customers will benefit from an expanded suite of API connectivity, workflow automation, and data analytics solutions, purpose-built for retail banking. By accessing the combined product suite, financial institutions will be able to accelerate their IT modernization timeline by adopting best-of-breed financial technology solutions across different use cases, including account opening, servicing, loan origination, cash automation, payments, risk and compliance, and digital banking.

Ted Coons, Partner at OceanSound, said, “Financial institutions struggle to keep pace with their digital transformation goals because of the difficulty that stems from transferring data between their core and new fintech products. CFM and NXTsoft have developed intuitive API solutions that address these challenges by compiling pre-built integrations into one central hub. Their products enable banks and credit unions to build connected experiences for their customers and employees, accelerate time-to-market of new technology, and lower operating costs.”

John W. Smith, CEO of CFM, added, “Our two companies share a common goal – to reduce the friction that banks and credit unions encounter in integrating modern technology with their core. By uniting with NXTsoft, we expect to expand our product offerings, cross-sell across our customer bases, facilitate new partnerships, and create professional development opportunities for our combined workforce. Beyond the strategic fit, our two firms have highly compatible cultures, which will facilitate a seamless integration process for employees and ensure zero disruption for our customers.”