Alkami launches sale process at $2B valuation after Jana pressure

Alkami Technology has formally launched a sale process, handing activist investor Jana Partners a win after months of pressure on the $2 billion digital banking software provider.

Alkami Technology formally launched a sale process after drawing acquisition interest from private equity firms, as activist investor Jana Partners pressed the $2 billion digital banking software provider to find a buyer.

The Plano, Texas-based company's advisers began contacting private equity firms over the past week following inbound interest, according to people familiar with the matter, who spoke on condition of anonymity because the discussions are confidential. The talks are in early stages and no deal is guaranteed, the people said.

Jana, which disclosed a 5.1 percent stake in Alkami in April after building its position in 2025, has argued the shares are undervalued and urged the company to explore a sale to a strategic buyer or private equity firm. The hedge fund last month contended Alkami was failing to run a genuine sale process, according to a Bloomberg report. Alkami shares have fallen about 15 percent over the past 12 months as investors weighed slowing growth and a tougher spending environment for financial technology companies. The stock rose 1.4 percent on the sale-process report, leaving the company with a market value of about $2 billion.

A sale would mark the latest consolidation in the digital banking software market, where providers such as nCino compete for banks and credit unions modernizing their technology stacks. Alkami reported second-quarter revenue of $129.84 million, up 27 percent year over year and ahead of consensus, though it remained loss-making with a GAAP loss of 8 cents a share.

Alkami provides cloud-based digital banking software and related services to banks and credit unions, including account opening, payments, fraud protection, data analytics and customer engagement tools. The company did not immediately respond to a request for comment.

The sale process comes as private equity firms continue to target fintech software assets with recurring revenue and sticky customer bases. A take-private deal would give Alkami's acquirer control of a platform serving community and regional financial institutions, a segment that has proven resilient even as larger fintech players face pressure on enterprise spending.

For Jana, a successful sale would confirm its thesis that Alkami's shares traded below the value of its franchise. The hedge fund's campaign mirrors similar activist pushes across the software sector, where investors have pressed boards to pursue strategic alternatives when organic growth stalls. Alkami's forward price-to-earnings multiple of about 26 and short interest of 7.2 percent of float suggest investors have positioned for a potential premium bid.

The outcome hinges on whether private equity buyers can justify a premium to Alkami's current valuation. With the company still loss-making on a GAAP basis and growth decelerating, bidders may seek a price closer to the stock's 12-month range rather than a substantial premium. Jana's willingness to hold its stake through a prolonged auction could shape the final terms, as could interest from strategic acquirers seeking to expand into community banking software.

This article is for informational purposes only and does not constitute investment advice.