Nordic Capital Advisors acquires Zafin — marking one of the largest deals of its kind in Canada

Nordic Capital Advisors, one of Europe's biggest private equity firms, has announced it is acquiring Zafin, a Vancouver-based product and pricing platform for banks and credit unions, for an undisclosed amount. The deal marks one of the largest in Canada's tech sector in recent months, given Zafin's probable valuation at over USD $500 million — based on annual revenues estimated between USD $75 million to $100 million. To date, Zafin’s diverse base of clients includes Wells Fargo, US Bank, HSBC, Truist, ING, CIBC, PNC, and ANZ.

Why the acquisition matters

“This partnership is an absolute game-changer for the Zafin team and our customers,” said Al Karim Somji, CEO of Zafin. “We have been powering the modernization and transformation of banks and future-proofing their banking technology investments for years. With Nordic Capital's scale, technology expertise, and deep market understanding, this partnership enables us to become a global leader in banking technology solutions."

Founded in 2002, Zafin has grown to become a preferred solution for banks struggling to modernize their technology due to legacy systems and processes. According to reports, most banks worldwide continue to face this issue, and Canada remains behind. With Nordic Capital's support, Zafin can be expected to remain at the forefront of helping banks keep up with customer expectations and stay competitive globally — along with continuing to put Vancouver on the map in the sector.

How Zafin works

What sets Zafin apart is that it works with a bank’s systems rather than replaces it — which, of course, can be a lengthy and costly effort.

The platform enables users to work collaboratively to design and manage relationship pricing, products, and packages. It also allows banks to quickly and accurately respond to changing customer and market needs across their entire system — all while ensuring regulatory compliance, transparency, and operational control. This offers banks a faster time to market, increased revenue opportunities, lower operating costs, and reduced operational risks.

Nordic Capital’s expectations

A keen observer in the sector, Nordic Capital, highlighted that they’ve been highly impressed with Zafin's innovative approach to helping clients react to a constantly changing business landscape.

“We firmly believe that Zafin will emerge as a gold standard in bank IT modernization efforts,” said Mohit Agnihotri, a partner at Nordic Capital. “Nordic Capital looks forward to partnering with Zafin management on the next phase of the company's growth, including leveraging our seasoned in-house operational team, deep expertise and expansive relationships in the sector."

Don't miss out on the funding and deals happening in your backyard. Subscribe or become a member of Vancouver Tech Journal.