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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowNew York City-based investment firm The Riverside Co., which acquired Carmel-based financial technology business Baker Hill in 2015 for $100 million, has reached an agreement to sell the company to a fellow private equity firm, Chicago-based Flexpoint Ford.
Baker Hill announced the agreement Wednesday. Baker Hill and Riverside declined to share financial details of the transaction. Flexpoint Managing Director Arjun Thimmaya did not immediately return a message Wednesday afternoon seeking detail about the agreement.
Baker Hill CEO John Deignan and the others on the company’s existing leadership team will continue to lead the business and remain shareholders in the company. The deal is expected to close within the next 30-45 days, Deignan told IBJ.
The company will continue to do business under the Baker Hill name and no staff reductions are planned, Deignan said.
Deignan said Baker Hill has enjoyed strong revenue growth in recent years, including double-digit revenue growth in 2022. The company has about 145 employees, three-fourths of whom live in central Indiana and the remainder of whom work remotely.
Established in 1983 by entrepreneurs Mark Hill and Karen Hill, Baker Hill is a software-as-a-service firm that provides loan origination, risk management and analytics software to more than 400 banks and credit unions. The company was acquired by Dublin-based Experian PLC in 2005 for an estimated $75 million. Experian sold Baker Hill to Riverside in 2015.
Flexpoint Ford, which has offices in both Chicago and New York City, was formed in 2005 and specializes in investments in the financial services and health care industries.
“Given our deep experience in financial services, we are thrilled to partner with John and the Baker Hill team in the next chapter of their growth,” Flexpoint Managing Director Arjun Thimmaya said in a written statement. “… We will continue to support the management team’s goal to enhance the platform’s capabilities through investments in product development and acquisitions.”
Deignan called the development “an extremely positive outcome” for Baker Hill’s clients and employees. “It’s an exciting time for us, and this was the type of partner we needed at this point in time as far as the stage of our growth,” he said.
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