Investment will fuel international expansion and R&D as the company focuses on enabling the digital transformation of life insurance, wealth and asset management firms.
MONTREAL, March 1, 2023 /CNW/ - Equisoft, a leading global digital solutions provider to the financial industry, is pleased to announce the successful closing of a $125 million equity investment. Of this total investment, $70 million is from new investors Investissement Québec and the government of Québec, with the remainder coming from existing long-time investment partners, Export Development Canada (EDC) and Fondaction.
Equisoft, founded in 1994, is at the forefront of digital transformation for the life insurance industry, and is a leader in wealth and investment management technologies. The new funding will contribute to its global expansion, both organically and through strategic acquisitions. It will also accelerate further development of its integrated life insurance software platform and wealth products to better serve its global customer base.
"Digital transformation and customer experience projects are no longer optional. Equisoft's mission is to help companies through this process – at any stage of digital maturity – by delivering the most trusted solutions for complex financial services challenges. Our customer focused approach has enabled us to gain the confidence of some of the largest financial institutions around the world," said Equisoft CEO, Luis Romero. "We are honored by the trust and funding from our long-time investors and are thrilled to welcome Investissement Québec and the government of Québec as new investment partners. Their focus on domestic and international growth is a great fit with our expansion strategy as we look to further develop our global footprint through continued investment in our people, our products and through international acquisitions."
For the last ten consecutive years, Equisoft has experienced strong double-digit organic growth and now serves over 250 financial institutions in 17 countries. Over the past five years, the company successfully expanded internationally, becoming a dominant player in LATAM, the Caribbean and Europe, in addition to its already healthy North American presence. The company is continuing to develop its end-to-end life insurance and wealth management platforms, which power digital transformation in leading international companies.
As part of this round of financing, Investissement Québec and the Québec government invested a total of $70 million, including $36 million from Investissement Québec's own funds and $34 million from the Fonds pour la croissance des entreprises québécoises (FCEQ).
"The digital transformation of Quebec businesses is a key priority for us. This investment in Equisoft will accelerate this transformation in the life insurance and wealth management sectors and help businesses increase their efficiency," commented Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region.
"As global financial institutions race to digitally transform themselves to meet high customer expectations and to adapt to market changes, Equisoft has become a world leader. Investissement Québec is proud to support Equisoft's initiative to accelerate the digital transformation of companies in their industry," said Guy LeBlanc, President and CEO of Investissement Québec.
"EDC has been partnering with Equisoft for over 14 years, and we have a very strong relationship," added Guillermo Freire, Senior Vice-President, Mid-Market Group at EDC. "EDC is here to propel the international growth of Canadian mid-market companies. With EDC's support, Equisoft has been able to expand into international markets and maintain a successful growth trajectory. Together we will make their long-term vision to become a global leader a reality."
Since its inception in Montreal, Quebec, Equisoft has been focused on both its financial growth and positive economic, social, and environmental impact. "Financial technologies play a leading role in the digital transformation of the financial services and insurance sector. For Fondaction, supporting Equisoft at every stage of its growth since 2008 is also about strengthening Montreal's Fintech ecosystem and contributing to its international standing," concluded Geneviève Morin, CEO of Fondaction.
RBC Capital Markets served as exclusive financial advisor to Equisoft on this transaction.
Founded in 1994, Equisoft is a global provider of advanced insurance and investment digital solutions. Recognized as a valued partner by over 250 of the world's leading financial institutions in 17 countries, Equisoft offers a complete ecosystem of solutions, from innovative front-end applications to extensive back-office services and unique data migration expertise. The firm's flagship solutions include SaaS policy administration, CRM, financial needs analysis, financial planning, asset allocation, fund and portfolio analysis, quotes and illustrations, electronic application, agency management systems, as well as customer, agent and broker portals. Equisoft is also Oracle's largest and most experienced partner for the OIPA platform. With its business-driven approach, deep industry knowledge, innovative technology, and expert teams based in Canada, USA, UK, Chile, Colombia, South Africa, India and Australia, Equisoft helps its clients tackle any challenge in this era of digital disruption.
Investissement Québec's mission is to actively participate in Québec's economic development by stimulating business innovation, entrepreneurship and takeover, as well as the growth of investment and exports. Active in all administrative regions of Québec, the Company supports the creation and development of businesses of all sizes through investments and adapted financial solutions. Investissement Québec also supports businesses through consulting services and other support measures, in particular technological support offered by Investissement Québec–CRIQ. Also, thanks to Investissement Québec International, the Corporation supports companies in terms of exporting and oversees in the prospecting of talent and foreign investment in Québec.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians.
A forerunner for the past 25 years, Fondaction is the investment fund for those who are mobilizing for the positive transformation of Quebec's economy, making it more productive, equitable, inclusive and green. As a labour-sponsored fund, Fondaction represents tens of thousands of savers and hundreds of companies committed to driving Quebec's progress. It manages net assets of more than 3.25 billion dollars invested in hundreds of businesses and on the financial markets, favouring investments that generate positive economic, social and environmental spinoffs in addition to financial return. Fondaction helps create and maintain jobs and reduce inequalities while contributing to the fight against climate change. For more information, go to fondaction.com or our LinkedIn page.
SOURCE Equisoft
Source: Jean Sabbagh, Chief Revenue Officer, Equisoft, 1 888.989.3141, ext. 122, [email protected]
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