Velocity Solutions, Inc. (“Velocity” or the “Company”) has been acquired by an affiliate of H.I.G. Capital ("H.I.G."), a leading global private equity investment firm with $24 billion of equity capital under management, along with Velocity’s senior management team who will own a minority equity position in the Company.
Founded in 1995 and headquartered in Fort Lauderdale, FL, Velocity offers software and technology-enabled solutions to banks, credit unions and insurers to drive revenue, ensure compliance, and manage risk. Velocity’s compliance-focused Intelligent Limit System® dynamically customizes overdraft limits on a daily basis for each account holder based upon a consumer’s ability to repay using its proprietary technology. In addition, the Company provides a suite of tech-enabled solutions that leverage data to drive increased activity through targeted marketing campaigns, along with strategically deploying rewards programs for financial institutions and insurers. Finally, the Company recently launched CashPlease™, a solution that allows banks and credit unions to provide small, short-term loans to consumers as an alternative to high-cost storefront payday lenders.
“Velocity represents an attractive opportunity to invest in the marquee third-party overdraft and account activity enhancement solutions provider in the market,” said Keval Patel, Managing Director at H.I.G. “We are excited to back the long-serving management team to grow the business by continuing to invest in the Company’s current offerings and also by adding new cutting-edge solutions.”
“We are very excited about this next stage for Velocity. Our business is at an inflection point and H.I.G. is the right partner who is committed to investing in our business to allow our management team to take advantage of growth opportunities,” said Christopher Leonard, Velocity’s CEO. “Our clients, employees, and partners will benefit from a reinvigorated focus on product development and investments aimed at meeting the evolving needs of our clients.”
The Velocity investment adds to H.I.G.’s strong and growing presence in the technology sector with ten platform acquisitions in 2017 alone
*Transaction completed by WHA professional while at previous firm.