Sector-specialist private equity investor Nordic Capital has agreed to acquire a majority stake in software as a service (SaaS) core modernisation and transformation solutions provider Zafin.

The financial terms of the transaction were not revealed.

According to Nordic Capital, the investment is made in close collaboration with Zafin’s founders and management, who will be reinvesting in the company alongside the private equity investor.

Nordic Capital Advisors partner Mohit Agnihotri said: “Nordic Capital has been a keen observer of bank IT modernisation efforts and has been highly impressed with Zafin’s innovative approach to helping its customers react to a constantly changing business landscape.

“The Company’s exceptional track record of success and resoundingly positive customer feedback are a testament to the entire Zafin team and product they have built.”

Established in 2002, Zafin provides a SaaS product and pricing platform that streamlines core modernisation for banks around the world.

Zafin’s primary SaaS platform retrieves product and pricing data from various core systems, allowing users to collaborate in designing and managing relationship pricing, products, packages, and customised propositions.

Besides, the platform enables banks to respond dynamically to evolving customer and market requirements across their entire bank core system footprint. It is also said to ensure regulatory compliance, transparency, and operational control.

Zafin CEO Al Karim Somji said: “This partnership is an absolute game-changer for the Zafin team and our customers. We have been powering the modernisation 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.”

Subject to customary conditions, the deal is anticipated to be completed during Q1 2024.

Goldman Sachs acted as exclusive financial adviser to Zafin and Fasken Martineau DuMoulin was the SaaS core modernisation and transformation solutions provider’s legal counsel.