Capstone Headwaters, now Capstone Partners, a premier international middle-market investment bank, advised BankTEL, a provider of A/P invoice & accounting automation solutions to more than 20 percent of banks across the U.S., on its sale to AvidXchange, a provider of accounts payable and payment automation solutions to the middle market.
Based in Columbus, MS, BankTEL is the industry leader in compliant financial accounting software solutions. The Company’s core product, ASCEND, contains modules for accounts payable, fixed asset management and tracking prepaid accrual items as well as several add-on applications to automate key accounting workflows. Founded in 1992, the Company is a recognized leader in the Financial Technology (“FinTech”) sector and has maintained relationships with over 1,700 financial institutions.
Capstone was our firm of choice to represent us in this important point in our long history. Their knowledge of our technology, the FinTech industry, and extensive experience with finding the most appropriate partner to monetize what we have built, was critical to the success of this transaction.
“Capstone Headwaters’ deep understanding of this process allowed us to navigate every aspect of the deal resulting in an optimal outcome for all,” commented Boyce Adams, Jr., President and CEO of BankTEL.
“David Francione, head of Capstone Headwaters’ FinTech practice and his team provided unwavering support and advice from inception through close and was always prepared for any obstacle that came up that required strategic thinking that provided a path forward,” added John Bowen, CFO of BankTEL.
Since inception in 2000, AvidXchange has poised itself as an industry leader in automating invoice and payment processing for middle-market businesses. Acquiring BankTEL instantly makes AvidXchange the dominant provider of invoice-to-payment solutions for midmarket customers in the banking and financial services sector.
“Our goal was to find the right partner that shared in the same strategy and vision for BankTEL and its shareholders. AvidXchange’s ability to leverage BankTEL’s ASCEND solution and to monetize its vast B2B A/P invoice payments opportunity made them the appropriate choice. There is a significant opportunity in the B2B integrated payments area and BankTEL developed a unique solution for the banking industry vertical,” commented David Francione, Managing Director of FinTech for Capstone Headwaters.
Capstone Headwaters was uniquely positioned to advise on this deal, given their deep industry experience in the FinTech and payments space. They have advised on several invoice and payment transactions. The transaction was led by David Francione, head of Capstone Headwaters’ FinTech practice, with assistance from David DeSimone, Director in the Technology Group.