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Digital Insight

Digital Insight
FoundedJuly 1995; 30 years ago (1995-07)
FounderPaul Fiore
Daniel Jacoby
FateAcquired by NCR Corporation in 2014; divested to Veritas Capital in 2024 and now part of Candescent
HeadquartersRedwood City, California

Digital Insight was an American provider of online banking software for banks and credit unions, headquartered in California. Founded in 1995 by Paul Fiore and Daniel Jacoby,[1] the company grew rapidly during the late 1990s, went public during the dot-com boom in 1999, and expanded through a series of acquisitions. In 2007, it was purchased by Intuit and rebranded as Intuit Financial Services.[2] The business was later sold to private equity firm Thoma Bravo in 2013,[3] restored to the Digital Insight name, and acquired by NCR Corporation in 2014 as part of its digital banking division.[4] In August 2024, NCR Voyix agreed to sell the division to Veritas Capital, after which it became part of Candescent.[5]

History

[edit]

The company was founded in July 1995 by Paul Fiore and Daniel Jacoby.[6]

In February 1996, the company raised $1.1 million in seed money from the founders' former employer, XP Systems, and received its first client, Community Credit Union, of Plano, Texas.[7]

The company had $85,000 in revenue in its first six months. Revenue jumped to $1.5 million in 1996 and to $4.1 million in 1997, and to $8.2 million in 1998.[7]

In April 1997, the company raised $6 million from Menlo Ventures.[8]

In September 1997, the company acquired RJE Internet Services, a developer of bank websites.[9]

In March 1998, the company raised $3 million from Menlo Ventures and $5 million from HarbourVest Partners.[10]

In October 1998, John Dorman became CEO of the company.

On October 1, 1999, during the dot-com bubble, the company became a public company via an initial public offering. After pricing at $15 per share, the stock rose to $32 per share on its first day of trading, up 114%.[11][12]

In February 2000, the company acquired nFront.[13]

In April 2000, the company acquired 1View Network.[14]

In July 2000, the company acquired AnyTime Access for $140 million.[15][16]

In February 2002, the company acquired Virtual FinancialServices for $51 million.[17]

In October 2003, the company acquired Magnet Communications for $33.5 million in cash and 1.45 million shares of Digital Insight common stock (valued at approximately $34.6 million at the time the acquisition was completed).[18][19]

Also in October 2003, Jeffrey Stiefler was named CEO of the company.

On February 7, 2007, Intuit acquired the company for $1.35 billion.[20]

In October 2008, the company introduced the consumer version of FinanceWorks[21] and in December 2008, the small business version was launched.[22]

In September 2013, John O’Malley was named CEO of the company.[23]

On August 1, 2013 Thoma Bravo acquired Intuit Financial Services for $1.025 billion.[24]

On January 10, 2014, NCR Corporation acquired the company for $1.65 billion.[25][26]

In 2015, the company integrated EyeVerify's eye vein recognition technology, called Eyeprint ID, into its mobile banking platforms.[27]

On August 6, 2024, NCR Voyix entered an agreement to sell their digital banking platform to Veritas Capital for $2.45 billion.[28]

References

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  1. ^ Smith, Leo (December 17, 1996). "Internet Services Provider Digital Insight Takes Aim at Banks". Los Angeles Times.
  2. ^ "Intuit Completes Acquisition of Digital Insight" (Press release). Business Wire. February 7, 2007.
  3. ^ "Thoma Bravo Completes Acquisition of Intuit Financial Services; Newly Launched as Digital Insight" (Press release). Business Wire. August 1, 2013.
  4. ^ "NCR Completes Acquisition of Digital Insight" (Press release). Business Wire. January 10, 2014.
  5. ^ "NCR Voyix Enters Definitive Agreement to Sell Digital Banking to Veritas Capital for $2.45 Billion Purchase Price". August 6, 2024.
  6. ^ Smith, Leo (December 17, 1996). "Internet Services Provider Digital Insight Takes Aim at Banks". Los Angeles Times.
  7. ^ a b Hovey, Juan (January 20, 1999). "Partners Looked for (and Found) Capital in Right Places". Los Angeles Times.
  8. ^ MURPHY, BARBARA (April 8, 1997). "Digital Insight Will Receive $6 Million in Funding for Internet Banking". Los Angeles Times.
  9. ^ MURPHY, BARBARA (September 16, 1997). "Digital Insight Acquires Bank Web Site Developer". Los Angeles Times.
  10. ^ MURPHY, BARBARA (March 10, 1998). "Digital Insight Gets Funds for Home Banking". Los Angeles Times.
  11. ^ Wilkinson, Carlton (October 1, 1999). "weekend10-01-99". TheStreet.com.
  12. ^ Nerney, Chris (November 1, 1999). "Soaring Internet IPOs Lit Up October Sky". QuinStreet.
  13. ^ "Digital Insight exec racking up excitement". American City Business Journals. February 21, 2000.
  14. ^ "DIGITAL INSIGHT TO ACQUIRE 1VIEW NETWORK". The New York Times. Bridge News. April 11, 2000.
  15. ^ "Digital Insight finalizes acquisition of AnyTime Access". American City Business Journals. July 31, 2000.
  16. ^ "Digital Insight Agrees to Acquire AnyTime Access for $140 Million". The Wall Street Journal. March 31, 2000.
  17. ^ Bruno, Mark (February 1, 2002). "VIFI Sells Out for $51 Million, Only $3.75 Million in Cash". American Banker.
  18. ^ "Digital Insight to buy Magnet Communications". American City Business Journals. October 23, 2003.
  19. ^ "Market report: Software maker's shares fall on report". Newspapers.com. Ventura County Star. 27 November 2003. p. D2. Retrieved 9 April 2024. Digital Insight Corp. (Nasdaq: DGIN) rose 13 cents to $24. The Calabasas company has completed acquisition of Magnet Communications Inc. for 1.45 million shares of Digital stock and $33.5 million in cash.
  20. ^ "Intuit Completes Acquisition of Digital Insight" (Press release). Business Wire. February 7, 2007.
  21. ^ Fest, Glen (October 1, 2008). "Intuit Launches FinanceWorks out of Pilot Phase". American Banker.
  22. ^ "Optimize your budget". CNN. October 28, 2008.
  23. ^ "Digital Insight Names John O'Malley as New CEO" (Press release). Business Wire. September 23, 2013.
  24. ^ "Thoma Bravo Completes Acquisition of Intuit Financial Services; Newly Launched as Digital Insight" (Press release). Business Wire. August 1, 2013.
  25. ^ "NCR Completes Acquisition of Digital Insight" (Press release). Business Wire. January 10, 2014.
  26. ^ Todd, Sarah (January 10, 2014). "NCR Closes Digital Insight Deal". American Banker.
  27. ^ Passy, Jacob (February 12, 2015). "Digital Insight, EyeVerify to Offer Eye Vein-Based Security for Mobile Apps". American Banker.
  28. ^ "NCR Voyix Enters Definitive Agreement to Sell Digital Banking to Veritas Capital for $2.45 Billion Purchase Price". August 6, 2024.