Lakeview Equity Partners LLC, a Milwaukee private equity firm, has acquired a stake in Plymouth, Minn.-based CFC Technology Corp., a technology consulting and software firm that serves banks and other financial institutions. Terms of the transaction were not disclosed.
CFC’s president and chief operating officer, who founded the company, will remain owners of the company and will continue to serve as its leaders. The company will also retain its approximate 30 employees. It will continue to be based in Plymouth, Minn.
The company’s ability to both develop custom software for banks and other financial institutions and to serve as a technology advisor to those customers made it a highly attractive investment, despite the ups and downs of the financial services sector in recent years.
“They can help a bank make all of their IT decisions and they can serve in that capacity externally,” said W. Kent Velde, president of Lakeview. “And they have a large number of customers – there are still plenty of banks out there and thousands of them will continue to need this type of support and maybe need it more than ever.”
CFC develops and sells its own check imaging and remote deposit capture, data recovery and business continuity solutions, in addition to its technology infrastructure consulting services. By partnering with Lakeview, the company believes it will be able to continue its growth, said Bill Ristvedt, president of CFC.
“(Lakeview) has extensive experience in the financial services and financial technologies,” he said. “We are confident that this partnership will help us broaden the service and solution offerings CFC can provide to our customers and ultimately grow our business.”
The CFC investment is Lakeview’s sixth transaction. The firm’s other investments include 5 Alarm Fire and Safety Equipment in Fort Atkinson, Automatan in Plover, Firehouse Animal Health Centers in Denver, Colo., LS Research in Cedarburg, and onPeak in Chicago.