Q2 mulling private equity takeover bid

By Liza Tetley on Thursday 19 May 2022

Digital Banking

The US cloud banking software fintech is said to be weighing potential sale options.

Q2 mulling private equity takeover bid
Image source: Austin skyline/Pexels - Trac Vu

Austin-based banking software provider Q2 is mulling its options as the company fields interest from potential buyers, according to a report by Bloomberg.

Previously dwindling shares in the company spiked in value by 17 per cent upon rumours that private equity buyers were pitching offers. Though no decisions have yet been made and Q2 may choose not to sell, the fintech is nonetheless working with a financial adviser, ostensibly to assess its options.

Q2 provides cloud-based lending products to clients including fintechs and other financial institutions. The company now has over 1,300 customers, with about 50 per cent of banks located in the US and Canada now using its services.

The company’s value could see $70 per share, according to analyst Robert Baird speaking to Seeking Alpha in a separate report.  

The company reported a net loss in its results for the first quarter of this year; something it attributed to increased costs. Nonetheless, the fintech’s messaging that it released just a few weeks ago was positive.

“We delivered solid financial results in the first quarter, with revenue exceeding the high end of our guidance,” said David Mehok, CFO at Q2.

“Based on our recent performance and the favorable demand environment, we are raising our full-year guidance, which reflects confidence in a reacceleration of revenue growth and margin expansion exiting 2022 and into 2023.”

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