UK payments house Dovetail has bagged its first institutional shareholder with a "significant double-digit million dollar' investment from private equity firm ViewPoint Capital Partners.
Dovetail offers a modular plug-and-play platform for wholesale payments processing which is designed to integrate with big bank legacy systems. The approach has won favour with top tier banks struggling to adapt their cumbersome legacy systems to cope with new regulations and electronic payment instruments. The twelve-year old company now claims four of the top six payments banks as customers.
Urs Ehrismann, managing partner of ViewPoint, comments: "Dovetail is on trend and the market increasingly recognises the advantages Dovetail can unlock. These factors and a very positive market outlook have made investing in Dovetail very opportune."
The transaction marks ViewPoint's fourth investment in the financial technology industry. Other portfolio firms include Quanthouse and Fernbach. Regulatory compliance outfit Aquin Components was sold on to State Street in 2008.
Martin Coen, CEO of Dovetail, says the PE injection will be used to boost sales and marketing and enhance support for existing users.