Q2, a provider of digital banking software, has acquired Lender Performance Group (also known as PrecisionLender) for $510 million in cash, the company's largest acquisition to date.
The acquisition is part of the Austin, Tex., company's effort to deepen its expertise in commercial banking software, according to Will Furrer, its chief strategy officer.
“The acquisition of PrecisionLender puts us in a position to allow a commercial banking relationship manager to build stronger, more lasting relationships with critical accounts by allowing for the deal making and negotiating process to be very honest, very transparent and very collaborative while allowing those relationship managers to know that they're negotiating deals that work inside the economic parameters of the bank,” Furrer said.
Despite its name, PrecisionLender, which is based in Charlotte, N.C., does not make loan software. It has a sales and coaching platform that gives bankers recommendations they can use to win deals and maintain client relationships. It’s used by 13,000 bankers at 150 banks.
For example, when a commercial banker is meeting with a business customer and determining that company’s needs for wire transfers and ACH limits, it might turn out that the company needs some kind of loan or line of credit. PrecisionLender can suggest terms, collateral and down payments that would fit within the bank’s lending requirements.
PrecisionLender’s software is cloud based and driven by application programming interfaces. It integrates with loan platforms and customer relationship management products like Salesforce and Microsoft Dynamic.
