Toronto-based revenue management software firm PureFacts has sold a majority stake of its business to New York City-based private equity firm GrowthCurve Capital.
The purchase price and equity share acquired were not disclosed, but according to reporting from The Globe and Mail, two sources familiar with the transaction said it values PureFacts at $250 million. A currency was not specified.
“We have come a long way since our humble roots as a small, Canadian wealthtech firm.”
Robert Madej, founder and CEO of PureFacts
A statement from the company announcing the deal noted that founder and CEO Robert Madej and PureFacts’ employees will retain their interest in PureFacts following the transaction.
Madej told The Globe that equity investors Round13 Capital and Canadian Business Growth Fund sold all their shares as part of the deal. Both participated in PureFacts’ $37-million round in December 2021, and Round13 participated in PureFacts’ $20-million CAD funding round in 2020.
Founded in 1997, PureFacts provides a number of solutions aimed at helping wealth management, asset management, and asset-servicing firms manage and grow their revenues. One of the company’s offerings, PureRevenue, allows users to calculate, collect, distribute, and optimize their revenues.
PureFacts works with customers in Canada, Europe, the United Kingdom, the Asia-Pacific region, and the United States. On its website, the company claims it has supported $10 trillion in assets under management, managed $2 billion in revenues annually, and has over 125 customers across Canada, the United States, Europe, and Asia.
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Some of these clients include the Bank of Montreal, Fidelity, Credit Suisse, Scotiabank, Canada Life, and the Bank of Singapore. “We have come a long way since our humble roots as a small, Canadian wealthtech firm,” Madej said in a statement.
In a statement, GrowthCurve Capital founder and CEO Sumit Rajpal said his firm has been impressed with PureFacts’ growth journey.
“PureFacts is exactly the type of company we look for in making strategic investments,” Rajpal added. “We look forward to helping accelerate the company’s growth trajectory by investing in human capital, advancing the company’s robust technology platform, and employing our expertise in AI and digital transformation to introduce new solutions and capabilities to PureFacts’ clients.”
PureFacts said this new partnership with GrowthCurve Capital will help it ramp up new product development, embed “artificial intelligence and data-driven insights” into its existing revenue management solutions, and hasten the company’s entry into new markets.
“It was critically important to find a strategic partner with the capabilities to help accelerate our ability to deliver value to our clients,” Madej added. “The GrowthCurve team gained a deep understanding of our clients, our people, our products and our vision. We are thrilled to partner with them to enable our clients to grow their revenues more profitably.”
Feature image courtesy Unsplash.