By Milana Vinn and David French
(Reuters) -nCino Inc, which offers cloud-based software to banks, is exploring its options, including a potential sale, after attracting takeover interest from private equity firms, people familiar with the matter said on Friday.
nCino’s board of directors has been in talks about forming a special committee to review the expressions of interest in a deal and decide on its next steps, the sources said.
Insight Partners, a private equity firm that owns about 35% of nCino, has not yet decided whether it will participate in any potential deal or simply cash out, the sources added.
The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential.
Spokespeople for nCino did not immediately respond to requests for comment, while Insight Partners declined to comment.
Shares of nCino ended trading in New York on Friday up 24% at $31.69 on the news, giving the company a market value of about $3.6 billion.
Based in Wilmington, North Carolina, nCino offers cloud-based software to banks and financial institutions that helps digitize their processes, including around lending and deposit-taking. It was spun out off North Carolina-based Live Oak Bancshares in 2011.
The company subsequently attracted several venture capital investors beyond Insight Partners, including Wellington Management, Salesforce Ventures, Bessemer Partners and T. Rowe Price.
It listed on the stock market in July 2020. Its shares have since lost 20% of their value as it has struggled to turn a profit.
The company reported in March, however, that its revenue in the fourth quarter of fiscal 2023 rose 46% to $109.2 million, driven by a 53% increase in subscription revenue.
(Reporting by Milana Vinn and David French in New York; Editing by Daniel Wallis and Jonathan Oatis)
