Acquisition will provide financial institutions with greater functionality and choice for digital account opening and loan origination solutions on a best-of-breed digital banking platform
Alkami Technology, Inc., a leading cloud-based digital banking solutions provider for US financial institutions, announced it has finalized its acquisition of MK Decisioning Systems, LLC (“MK” or “MK Decision”), a technology platform and provider for digital account opening, credit card, and loan origination solutions. The acquisition reinforces and expands Alkami’s position as a best-of-breed digital banking platform provider that designs secure solutions across the user journey, from acquisition to engagement to conversion. In acquiring MK, Alkami is expected to expand its total addressable market while gaining new cross-selling opportunities among a larger installed base.
“Alkami understands just how critical our digital banking platform is to our clients’ continued success in meeting the needs of their users,” said Mike Hansen, CEO, Alkami. “To that end, MK’s solutions unlock digital account opening and loan origination innovations on a single, cloud-based platform that delivers capabilities previously reserved for the largest technology companies, megabanks and fintechs in the market. We are excited and honored to join forces with the MK team and their clients as we continue democratizing digital banking technology for the benefit of US consumers and businesses.”
“MK is overjoyed to join forces with Alkami as we accelerate our shared mission to strengthen local and regional financial institutions and the economies they serve. The banking journey starts with the first account a consumer opens: whether it be a deposit or loan account. By integrating MK’s onboarding and decisioning solutions, Alkami has extended the digital banking journey from website and account opening to core and digital banking,” said Har Rai Khalsa, CEO, MK Decision.
All employees from the newly acquired MK, located in San Diego, California and throughout the US, have been retained by Alkami as part of the transaction. Khalsa will be the Vice President and General Manager of the newly formed Digital Account Opening and Loan Origination Solutions Team within Alkami.
The purchase price for MK consists of $20 million of proceeds at close and an opportunity for MK to earn up to an additional $25 million in consideration contingent upon the achievement of certain milestones in 2022 and 2023. Alkami expects the acquisition to be immaterial to its financial results for the third quarter of 2021.