Zafin has agreed to acquire Palo Alto, Calif.-based Naehas as its bank modernization business reportedly booms in the AI era.
The news: Toronto-based Zafin announced the acquisition on Monday, saying in a news release that Naehas will expand its capabilities as it builds out its portfolio of AI-enabled technology for regulated institutions, particularly in marketing and compliance.
A Zafin spokesperson told BetaKit that the company agreed to pay a nine-figure sum in US dollars for Naehas through a combination of equity and cash, partially financed by a line of credit. The transaction is expected to close by the end of this year.
From the source: “Naehas would deepen and extend what Zafin can enable for financial institutions, allowing us to support more of the journey from product and pricing through offer execution and customer delivery,” Zafin CEO Charbel Safadi wrote in a LinkedIn post.
The context: Founded in 2002, Zafin helps banks transition from legacy software to FinTech solutions such as automated pricing, billing, and analytical tools. Earlier this year, Zafin leaned into AI with the launch of AIOS, an agentic orchestration platform that helps regulated businesses like banks maintain control over AI agents in their workflows.
Naehas marks Zafin’s first major acquisition since Swedish private equity firm Nordic Capital acquired a majority stake in its business in early 2024. A few months later, founder Al Karim Somji stepped away as CEO and Safadi took over the role. The Zafin spokesperson claimed the company has more than doubled its sales since Nordic Capital’s investment.
Final thought: Naehas has roughly 250 employees and generates between $30 million and $50 million USD ($42 million to $70 million CAD) in annual revenue, the spokesperson told BetaKit, adding that the combined business is expected to serve 16 of the top 20 US banks. The headcount and revenue additions will be significant for Zafin, which already has nearly 1,000 employees, according to its LinkedIn profile, and is on track to reach $200 million USD in annualized recurring revenue by the end of 2026, according to the spokesperson.
Feature image courtesy Zafin via LinkedIn.
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