Listed P2P software provider Q2 attracts takeover interest

A technology provider that provides software for financial firms including peer-to-peer lenders is reported to be the subject of a takeover.

New York Stock Exchange-listed Q2 Holdings is reportedly rumoured to be fielding interest from private equity buyers.

It comes amid increased interest in software providers from private equity firms keen to put uninvested money to work, according to Bloomberg.

The report said no decision has been made and the company may remain independent.

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Q2 Holdings has been asked for comment.

Texas-based Q2 Holdings went public in 2014.

It originally provided account opening and deposit-taking services to regional banks across the US, but 17 years later it has spread to become a global business which offers an end-to-end solution for digital banking and fintech businesses.

In addition to working with banks, Q2 also provides origination capabilities for financial institutions – including P2P lenders – who wish to originate loan transactions.

Q2 offers a series of modules, which can do everything from originations to managing delinquencies. This means that each client can essentially build a bespoke software solution based on their specific needs.

For example, Folk2Folk has chosen to use Q2’s portal technology to engage with clients and investors, as well as their origination solution which helps them to manage the origination process. They also use Q2’s loan technology to book and manage deals, and they use marketplace to oversee loan investment activity.

The latest rumours pushed its share price up 22 per cent yesterday to $51 (£41).

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