Kabbage Acquires Radius, Adding Insights into Millions of SMEs to its Platform

Small business financing company Kabbage has made a purchase that will help it get to know the world of SMEs all the better. In a deal announced today, Kabbage will acquire small business intelligence firm, and fellow Finovate alum, Radius, adding insights from more than 20 million U.S. small businesses to its platform.

Terms of the deal were not disclosed. Upon the successful closing of the acquisition, Kabbage said in a statement that it will add “nearly 20 team members” from Radius to its offices in San Francisco, including Radius CEO Joel Carusone, to help support the integration of the two platforms and the two companies.

“Data has always been our competitive advantage, and Radius strengthens it by adding millions of new and verified small business insights to our platform,” Kabbage CEO Rob Frohwein said. “These new technology and data-analysis capabilities further differentiate us from other SMB-focused fintech companies as we dramatically expand our product set and service platform to address the unique cash flow needs of small businesses.”

Expressing a “deep respect for Kabbage’s data-driven technology and focus,” Radius’ Carusone highlighted similarities between the two firms. “Our companies have complementary technical architectures and domain experience for decision making,” he said. “With Kabbage, we can build a more sophisticated analytics solution to identify, reach, and serve small businesses.”

San Francisco, California-based Radius was founded in 2009. The company demonstrated its platform at FinovateSpring 2014, showing how it leverages big data to gain insights into more than 27 million small and medium-sized businesses. This information helps FIs find the best customer segments, build efficient and accurate targeted lead lists, and measure the success of marketing campaigns.

Radius began 2019 with the launch of its Data for Good campaign to help the company’s employees and customers give back to their communities. This included credit-backs to the accounts of for-profit companies for any data used to support philanthropic causes. The campaign also featured service donations to nonprofits to enable them to use the Radius’ enterprise customer data platform to reach out to and potentially partner with small businesses.

In May, Radius unveiled a new data stewardship app designed to fix bad, siloed Salesforce data. The new solution enables enterprises to manage data across any Salesforce field based on unified, trusted data. “Existing tools enrich some external data,” Radius CEO Joel Carusone explained, “but what’s missing is an easy-to-use application coupled with a powerful platform that gives users access to data unified across all third-parties and their internal data sets.”

Atlanta, Georgia-based Kabbage made its first appearance on the Finovate stage in 2010, demoing its Kabbage Loan offering at FinovateSpring that year. The company most recently demoed its Kabbage Card, a part of the company’s Kabbage Everywhere product expansion, at FinovateSpring 2015.

Featured in June by CEO World in its look at fintechs that are helping fight for fair lending, Kabbage announced a partnership with online banking platform Azlo in May that would create a new entity, Mission Street Capital, to help small businesses get the financing they need to grow. Kabbage also announced in May that it was teaming up with the BTEA (Building Trades Employers’ Association) in a strategic alliance to help women and minority-owned business enterprise contractors to secure funding for their projects.

With $2.5 billion in funding, Kabbage includes SoftBank Capital, Mohr Davidow Ventures, and BlueRun Ventures among its investors. The company was founded in 2009.

In Third Deal in Four Weeks, Nymbus Acquires Sharp BancSystems


At the beginning of the month, cloud-based core-processing platform developer NYMBUS announced that it had bought core data processing solutions provider, R.C. Olmstead. Two weeks later, NYMBUS was back in deal-making mode, acquiring credit union software maker KMR. Two acquisitions in three weeks is a pretty impressive pace. But who knew there was more to come?

Today we learn that NYMBUS has scooped up another company, this time purchasing fellow core-processing vendor, Sharp BancSystems (SBS). Terms of the acquisition have not been disclosed, but Banking Technology reports that the deal is the largest for NYMBUS to date. Along with the company’s other recent acquisitions, NYMBUS now has $200 million in intellectual property driving “tried and tested” banking software for publicly traded FIs.


Chief Experience Officer Mario Garcia demonstrated NYMBUS at FinovateSpring 2016 in San Jose.

NYMBUS founder Alex Lopatine praised SBS as a “best-in-class” industry pioneer for nearly thirty years. Nevertheless recognizing that its back-end core system was in need of an expensive overhaul in 2014, SBS decided that a partnership strategy would be the best approach and began conversations with NYMBUS in 2015. Interestingly, NYMBUS hired former Sharp BancSystems CEO and president Scott Sharp as its Chief Operating Officer in February, a move that now clearly foreshadowed the acquisition.

“The functionality that allowed banks to be on the top-performance list for all these years is being developed in the NYMBUS core today,” Sharp said. “There are inherent efficiencies built into the single stack application approach with a modern user experience, and there won’t be anything that can touch us in side-by-side comparisons in the very near future,” he explained.

Founded in 2015 and headquartered in Miami Beach, Florida, NYMBUS demonstrated its technology at FinovateSpring 2016. Before its furious June acquisition pace, NYMBUS made headlines with its partnership with Geezeo in February, and launched its credit union collaboration service organization, CUNYMBUS in March. Also in March, NYMBUS was featured in Let’s Talk Payments as part of a look at innovative banking software companies.

Sparkroom Acquired by Digital Media Solutions


Marketing analytics provider Sparkroom was acquired by performance marketing company Digital Media Solutions (DMS) today.

Sparkroom will merge with the DMS team and by combining forces, Sparkroom will expand into new verticals and will add a host of resources to its solutions:

  • Enrollment management
  • Operational consulting
  • Brand strategy and development
  • Creative services
  • Website development
  • Media planning and buying

Sparkroom will retain its autonomy and will continue to operate out of its Paramus, NJ and Toronto, ON locations. As a part of the transition, the company has brought on Marcelo Parravicini as its new CMO.

The Toronto-based company offers marketing services such as SEO, advertising, compliance monitoring, and more. The company also creates software to help companies in a range of industries to analyze marketing efforts and automate performance.

Sparkroom debuted Lead IQ at FinovateSpring 2008.

TSYS to Acquire TransFirst for $2.35 Billion


Georgia-based payment solutions company TSYS announced the purchase of merchant-solutions provider TransFirst. The $235 billion, all-cash transaction will offer TSYS access to TransFirst’s 235,000 U.S.-based SMB clients. The deal is expected to enhance the ecommerce and omnichannel offerings of TSYS—making it the sixth-largest U.S. acquirer based on net revenue—and will boost its SMB client base to upwards of 645,000 merchants.

TransFirst’s 1,000 U.S.-based employees will join the TSYS workforce of 10,500. Upon closing the transaction, Mark Pyke, senior EVP and president of the TSYS merchant segment, will vacate his six-year career at TSYS, and be replaced by John Shlonsky, TransFirst president and CEO.

In a video, Troy Woods, chairman, president and CEO of TSYS, discusses the transaction with Shlonsky:

The deal is expected to close next quarter.

TSYS last demoed at FinovateAsia 2013 in Singapore, where the company debuted Authorization Controls.

Ciright One Purchases Stratos Card


While we were reading yesterday’s news that Bluetooth-connected payment card startup Stratos had been forced to shut down because a recent round of funding fell through, another plan for the company’s future was in the works.

This morning we learned Stratos signed an agreement to sell to Ciright One; terms of the deal were not disclosed.


Stratos co-founder Thiago Olson told TechCrunch that Stratos will continue to function as normal and plans to reinstate customer support in the next few weeks.

The Stratos card consolidates payment and membership cards into a single card with a rewrite-able magstripe. Users select one of three buttons on the card to transact with their top three cards, and access additional cards by activating a Bluetooth connection between the card and their smartphone. At FinovateSpring 2015, Stratos debuted a Digital Card Issuance platform that digitizes the card-fulfillment system by enabling users to download and use a virtual credit card within minutes of being approved.

Pennsylvania-based Ciright One is an active acquirer of Finovate alums. The company purchased GoNow Technologies (FinovateSpring 2013 demo) in September 2015 and last week launched The One, a smart card similar to the Stratos card.

FIS Closes SunGuard Acquisition to the Tune of $5.1 Billion


Fintech giant FIS Global (NYSE:FIS) closed a $5.1 billion deal to acquire software and technology services company, SunGuard.

The deal boots FIS to 55,000 employees and a combined revenue of $9.3 billion. As a part of the acquisition, the Florida-based company will repay SunGuard’s outstanding debt.

In a statement, FIS president and CEO Gary Norcross states:

This acquisition creates one of the broadest sets of technology assets and market expertise in the industry, and allows FIS to present new opportunities to our existing client base as well as to financial services markets that we have not historically served.

At FinovateSpring 2015 in San Jose, FIS debuted Cardless Cash, a mobile app that enables users to retrieve cash from ATMs using their smartphones. The application protects cardholders from ATM skimmers and uses in-app biometric authentication. Check out the live demo video.

Exit Stage Right: Trustev Sells to TransUnion for $44 Million


Today, in a blog post titled, A New Chapter, Trustev announced it has been acquired by one of its investors, TransUnion (NYSE: TRU), which went public on the NYSE earlier this year.

Pat Phelan says the exit will “allow us to deeply integrate with TransUnion and put our collective, rich-data sets and advanced technology to work in spotting fraudulent transactions even better than we already do.”

TransUnionIMGThe deal between the two companies, which have been partners since 2014, closed for $44 million. TechCrunch reports Trustev will see $21 million of the amount up front and $23 million more contingent on meeting certain targets.

TransUnion, one of the big-three U.S. credit bureaus, has recently been expanding into fraud and identity-management solutions. In a press release, TransUnion’s president and CEO Jim Peck said:

As fraud grows in volume and sophistication, TransUnion continues to invest in building our global capabilities to help companies manage their risk. Holistic information is a powerful tool to help our customers approve good transactions and prevent fraud, and Trustev’s innovative capabilities are at the forefront of technology in this increasingly critical field.

Trustev, a Cork, Ireland-based company with 15 employees spread across the globe, says its service will not change for current customers. All employees have committed to stay.

Trustev debuted its Retail Decision solution at FinovateEurope 2014 in London. The company’s Retail Decision offers brick-and-mortar retail locations real-time verification of customer identities at the point of sale. TransUnion Interactive, a consumer subsidiary of TransUnion, debuted ZenDough at FinovateSpring 2010.