A proposed new ownership agreement would widen the market for Wilmington-based Apiture.
In a news release last week, Kentucky-based financial software and technology firm CSI announced the company’s agreement to acquire Apiture, which provides digital banking solutions to hundreds of community and regional banks and credit unions across the United States. Assuming the transaction secures regulatory approval, shareholder Live Oak Bancshares could realize a healthy return.
Under the terms of the agreement, Apiture will become CSI’s fully owned subsidiary, a move that enlarges Apiture’s opportunities while retaining its focus on the financial institution segments it serves. That’s because the two organizations share a similar culture and mission, according to Chris Cox, Apiture's chief operating officer.
“CSI is a software company that serves community and regional financial institutions, just like Apiture,” Cox said Monday. “We both focus on customer services and forging relationships with our customers. (CSI) provides a number of software solutions, such as core banking software, customer engagement, loan origination and (management of) IT services. Together, we think we can create a powerful combination, providing a seamless experience to community and regional banks and credit unions.”
Because CSI is the larger entity, becoming part of CSI will accelerate Apiture’s ability to grow, while allowing Apiture to continue investing in innovation and collaboration with its customers, Cox said, adding that Apiture’s digital banking products will “significantly strengthen” CSI’s offerings.
“The market reaction to this announcement has been really positive,” Cox said. “We’ve seen analysts and industry observers comment that this is a really powerful combination of businesses and solutions that will help financial institutions grow.”
Since its launch in 2017, Apiture has focused exclusively on building digital banking capabilities that optimize its customers’ online and mobile end-user experience. Over the ensuing eight years, the company has made more than 200 financial technology integrations to enable it to create tailored solutions for financial institutions. Apiture’s capabilities are centered in the areas of consumer and business digital banking, digital account opening, data intelligence – helping financial institutions better leverage their data – and API banking, which allows different software systems to communicate with each other.
Apiture began life as a joint venture between Live Oak Bank and First Data Corp. Global fintech Fiserv later acquired First Data, and Apiture evolved into a standard corporate structure with shareholders, among which are Live Oak and Fiserv. Several years ago, its workforce of about 300 moved into quarters on the Live Oak campus.
When the merger closes, shareholder Live Oak Bancshares may realize a hefty return.
Following the announcement of CSI’s agreement to acquire Apiture, Live Oak Bancshares filed a notice with the Securities and Exchange Commission. It stated that, when the transaction closes, Live Oak Bancshares “anticipates realizing an estimated pre-tax gain in the range of $20 million to $25 million, subject to closing price adjustments.”
Reached for comment, Live Oak officials declined to elaborate.
Even after the expected close of the merger in the fourth quarter of 2025, Apiture’s relationship with Live Oak will continue, Cox added.
“Apiture has been proud to be (Live Oak’s) partner,” he said. “They will continue to be a client of ours, as well as a great supporter.”
