Fintech startup ClickSwitch Holdings Inc. has been acquired by Q2 Holdings Inc., the companies announced Thursday. The financial terms of the deal weren't disclosed.
Minneapolis-based ClickSwitch was founded in 2014 to make it easier for bank customers to switch accounts between financial institutions. It has over 450 banks as customers and has targeted major players, according to CEO Cale Johnston.
Q2 (QTWO: NYSE) is an Austin, Texas-based cloud-based software company that serves clients in the finance industry with an eye towards digital banking. Revenue rose more than 28% to $403 million in 2020 from the previous year.
ClickSwitch will help complement Q2's other offerings, the company said in a press release.
ClickSwitch and its team of about 50 employees will remain in Minneapolis, Johnston said. However, the future of the ClickSwitch brand remains uncertain, said Will Furrer, Q2's chief strategy officer. Most of Q2's offerings are marketed under its own name, he said.
ClickSwitch was caught between either raising a Series C round of venture capital or being acquired, Johnston said. But it already had a relationship with Q2, which turned into the deal. ClickSwitch will continue to grow and hire in Minneapolis, he said.
"As a combined force, we look forward to solving a fundamental issue that banks, credit unions and fintech companies face – managing the complexity and administrative burden of account switching – by providing the most comprehensive and differentiated digital account switching solution in the market," Johnston said in a statement.
ClickSwitch has raised nearly $20 million in venture capital including a $2 million round in 2020, a $13 million round in 2019 led by San Francisco-based Commerce Ventures and Point72 Ventures, which is led by billionaire investor Steve Cohen, and a $3.5 million round in 2018.
ClickSwitch is based out of the Loose-Wiles Building in Minneapolis' North Loop neighborhood.
