Banking Software Company nCino Reportedly Considering Takeover Offers

Two banking software companies saw their stock rise Friday (June 16) after a report that one is considering a takeover offer.

nCino’s stock leaped 25% Friday, while that of one of its competitors, Q2 Holdings, rose 5%, Seeking Alpha reported Friday.

The report attributed the gains to investors reacting to a report by Reuters that nCino was considering its options after private equity firms expressed interest in taking over the company.

The Q2 Holdings stock moved “in sympathy” with the gain made by its competitor, according to the Seeking Alpha report.

Reuters reported earlier on Friday that nCino’s board of directors was considering forming a special committee to review the private equity firms’ interest and look at the next steps the company could take.

It’s not certain that there will be any deal, according to the report, which cited unnamed sources.

nCino listed on the stock market in July 2020 and has seen its shares drop in price 20% since that time but reported in March that it had achieved a 46% gain in revenue during the previous quarter, the report said.

Its competitor, Q2 Holdings, considered its own acquisition offers about a year ago but held off on selling due to bids coming in lower than expected.

Q2 Holdings’ share prices started climbing in May 2022 when news first broke that the company was entertaining sale offers, but the company decided in June 2022 to hold off on moving forward with an acquisition.

In the year since then, Q2 Holdings has partnered with digital payments company Payrailz to provide banks and credit unions with improved payment experiences and collaborated with mortgage lender Rocket Mortgage to offer a digital home loan application process to banks and credit unions.

In recent news from nCino, the company partnered with Codat, an application programming interface (API) for small business, in September 2022 to automate and accelerate the ways banks can underwrite small business loans.

nCino said at the time that its services help cut down the time it takes banks to transfer information from a borrower’s financial statements into the bank’s financial analysis program.