Financial technology company nCino announced the $75 million acquisition of DocFox, an onboarding service provider for commercial and business banks.
DocFox, based out of Johannesburg, South Africa, automates the onboarding and account opening process for banks, according to Monday’s release by nCino officials. The software will be integrated into nCino’s tech stack to help financial institutions offer a wider range of services to their clients.
nCino has always been dedicated to digitizing and automating complex banking processes to increase efficiency, the company’s chief executive officer and board chair Pierre Naudé said in the release. The acquisition of Docfox will help add a modern experience to the onboarding process, something that has “lagged in innovation due to its complexity,” he stated.
The Wilmington-based fintech follows a “buy, build, or partner” model, a nCino spokesperson told the Business Journal. When deciding to acquire a company, nCino officials calculate whether the service is something they could build, buy or partner with to integrate. Company officials are constantly surveying the market for opportunities, they said.
“DocFox’s proven offering helps accelerate our ability to fulfill our single platform vision and allows us to deliver value to customers sooner while minimizing shifts to our existing product roadmap,” stated the spokesperson, “This acquisition is focused on technology and talent, not property.”
Gregory Orenstein, nCino’s chief financial officer, secured a revolving credit facility with Bank of America of up to $100 million in February 2022, which is intended to fund the $75 million cash price for the acquisition of DocFox, according to filings under the Securities and Exchange Commission.
Naudé is currently visiting South Africa, where the majority of DocFox’s employees are based, facilitating the transition, according to the spokesperson. The plan is to expand DocFox’s momentum in Africa and accelerate its expansion to further enter the United States market. DocFox's U.S. headquarters is in Miami.
The release included a statement from commercial banking company Five Star Bank’s James Beckwith, who stated Five Star will be implementing nCino and DocFox technologies.
DocFox was founded in 2016 and serves 450 customers across three continents, the release stated. The acquisition is expected to close this month. Keefe, Bruyette & Woods, a Stifel Company, served as a financial advisor and Wilson Sonsini Goodrich & Rosati Professional Corporation served as legal counsel to DocFox. nCino was represented by legal firm Sidley Austin LLP.
