CSI Announces Strategic Investment from TA
TA joins Centerbridge Partners and Bridgeport Partners to build on CSI’s strong momentum and advance the company’s growth and strategic vision
PADUCAH, Ky. (Jan. 10, 2024)—CSI, a leading provider of end-to-end financial software and technology, announced today a strategic investment from TA Associates (TA), a leading global private equity firm. Centerbridge Partners, L.P. (Centerbridge) and Bridgeport Partners (Bridgeport) will retain their positions as majority and minority investors, respectively.
“In our nearly 60-year history, we have remained uniquely focused on empowering community bankers with the most advanced technology that drives efficiency, meaningful growth and account holder loyalty,” said David Culbertson, CEO and President of CSI. “Welcoming TA to our team of strategic investors supports our goal to elevate our comprehensive suite of technologies and services and expand our capabilities with modern solutions community bankers need.”
TA’s investment comes during a momentous fiscal year for CSI, the first 10 months of which saw the company increase sales 36% year over year. CSI also announced multiple feature and function updates to its software platform, a number of strategic hires, its partnership with digital banking and treasury management fintech Dragonfly Financial Technologies, and its recent acquisition of loan origination software provider Hawthorn River. Each milestone illustrates CSI’s dedication to helping community banks compete and deploy impactful technology across both the back office and account holder journey—a commitment that underscored TA’s attraction to CSI.
“In our year-long, in-depth review of the core banking market, CSI emerged repeatedly as the leading innovator in its market segments,” said Hythem T. El-Nazer, Managing Director for TA. “It’s crucial for community banks to offer solutions that are both user-friendly and highly secure, to effectively serve their customers and keep up with the dynamism of the banking and financial services industries. CSI has devoted several decades to fostering a customer-first operating philosophy, investing in and developing a multi-tenant SaaS cloud solution, and building products that meet the specific needs of community banks. We are enthusiastic about joining forces with Centerbridge and Bridgeport to accelerate CSI’s growth and establish it as a frontrunner in the community banking technology market.”
El-Nazer and Mike Libert, Managing Director at TA, will join CSI’s board of directors alongside current board members, including Jared Hendricks, Senior Managing Director at Centerbridge, and Frank Martire, Bridgeport’s Founder.
“TA shares with Centerbridge and Bridgeport the deep conviction that CSI is in the best position to continue its growth trajectory and deliver on its mission to empower community and regional banks with technologies that enable their own growth and solve their most pressing technological challenges,” Hendricks said. “We, alongside Bridgeport, look forward to partnering with TA and benefiting from their software expertise as the board works together to support CSI’s future success.”
“CSI has proven its position as a leading financial software and technology provider,” Martire said. “The company’s momentum over the last 12 months has not only attracted other great partners like TA, but also showcases CSI’s unwavering commitment to its community banking customers. Community bankers continue to choose CSI for its second-to-none customer service and its commitment to deliver new and innovative products that enable scale.”
The transaction closed in December 2023. Financial terms of the transaction were not disclosed. For more information, visit csiweb.com.
As a forward-thinking software provider, Computer Services, Inc. (CSI) helps community and regional banks, as well as organizations worldwide, solve their customers’ needs through open and agile technologies. In addition to its nearly 60-year reputation for personalized service, CSI is shaping the future of banking by swiftly deploying advanced solutions that help its customers rival their competition.
TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries – technology, healthcare, financial services, consumer and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — Private Equity, Private Credit and Real Estate — in an effort to develop the most attractive opportunities for its investors. The firm was founded in 2005 and as of Sept. 30, 2023, has approximately $38 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies.
For more information, please visit www.centerbridge.com and LinkedIn.
Bridgeport Partners is a private investment firm with a long-term, value-oriented approach to investing. Bridgeport invests proprietary capital and partners with strategic sources of capital with a long-term orientation to support management teams and companies through industry and economic cycles. The firm, founded by Frank Martire, is led by seasoned operators and investors with decades of experience successfully building and leading companies in the public and private markets. For more information, please visit www.bgptpartners.com.