TEMPE, Ariz. & NEW YORK--(BUSINESS WIRE)--CFM, a software business driving transformation in retail banking, today announced that it has received a strategic investment from OceanSound Partners (“OceanSound”), a private equity firm investing in technology and technology-enabled services companies serving government and enterprise end markets. CFM will continue to operate under the leadership of the existing management team, led by CEO John W. Smith.
CFM is a leading software provider that integrates core banking systems with branch technology and creates modern retail banking experiences for financial institutions. Serving over 650 bank and credit union customers, CFM’s software and data analytics tools empower tellers to deposit or dispense cash from anywhere in the branch, helping financial institutions drive operational efficiency by reducing branch operating costs and improving productivity. CFM provides complete flexibility to its customers, helping them optimize their existing hardware and enabling purchasing choice via existing integrations with over 50 cash recyclers, self-service kiosks, and tablet banking interfaces.
“Since 2006, CFM’s mission has been to help banks and credit unions transform their retail strategy through technology,” said John W. Smith. “Our software products are driving the adoption of tablet-based service models, universal associates, self-service kiosks, and micro-branches, so financial institutions can deliver an enhanced in-branch experience to their clients and realize significant cost savings. With several market tailwinds behind us, we sought a partner that could help us capitalize on long-term secular trends, drive continued innovation across our product portfolio, and grow our talented team.”
Smith continued, “OceanSound is an experienced software investor with a proven track record of accelerating growth. With their investment and support, CFM will continue to develop innovative software and data analytics products, pursue additional partnerships with core providers, as well as make acquisitions that enhance our market position and capabilities to better serve the evolving needs of financial institutions. Building upon the vision of our founding team, John Dillon, Debra Dillon, Jim Ransco, JC Chen, and Nathan Moore, this partnership will help CFM achieve our growth objectives.”
“Changing consumer preferences are driving significant technology adoption in the retail banking sector,” said Ted Coons, Partner and Co-Founder at OceanSound. “Financial institutions increasingly view their retail branches as a critical channel for client engagement and are investing in new technologies to create personalized experiences. CFM’s products are purpose-built to serve banks and credit unions by automating labor-intensive, error-prone tasks so they can reskill tellers as universal associates and shift their consumer engagement model from transactional to advisory. The return on investment for CFM’s customers is large and immediate.”
“At OceanSound, we target technology companies with mission-critical solutions serving resilient end-markets where our capital and resources can serve as catalysts to accelerate growth,” said Parin Shah, Vice President at OceanSound. “CFM represents an attractive opportunity to invest in a market leader delivering a compelling value proposition for the retail banking sector via differentiated software products. We are thrilled to partner with the CFM management team, and we anticipate making significant investments to drive incremental differentiation and growth.”
GLC Advisors & Co., LLC served as financial advisor and Frazer Ryan Goldberg & Arnold LLP served as legal counsel to CFM. Skadden, Arps, Slate, Meagher & Flom LLP and Womble Bond Dickinson served as legal counsel to OceanSound.
About CFM
CFM is driving transformation in retail banking through software that integrates core banking systems with branch technology, including cash recyclers, self-service kiosks, and tablet banking interfaces. CFM’s software solutions and data analytics tools simultaneously help financial institutions create modern retail banking experiences and drive operational efficiency by reducing branch operating costs and improving productivity. CFM has sold over 45,000 licenses to over 650 bank and credit union customers and has been recognized by Banking CIO Outlook as a Top Banking Analytics Solution Provider and as one of the most innovative companies in Arizona by AZ Business Magazine. CFM was founded in 2006 and is based in Tempe, Arizona. For more information, please visit: https://www.whycfm.com/
About OceanSound Partners
OceanSound Partners is a New York-based private equity firm that pursues control investments in technology and technology-enabled services companies serving government and enterprise end markets. OceanSound employs a partnership approach, working closely with founders, entrepreneurs, and executives of middle market businesses to drive transformational growth. For more information, please visit: www.oceansoundpartners.com.