On February 16, 2021, Tonka Bay Equity Partners (“Tonka Bay”) announced the sale of NuSource Financial (“NuSource”) to Mosaic Capital Partners (“Mosaic”) and an employee stock ownership plan (ESOP). Based in Eden Prairie, Minnesota, NuSource is a market-leading bank technology company that supplies innovative ATM, branch transformation and security solutions to financial institutions.

Technology M&A Practice (Formerly Pagemill Partners) served as the exclusive financial advisor to Tonka Bay and NuSource in connection with the transaction.

Tonka Bay partnered with NuSource founder and CEO Jon Erpelding in 2015 to execute an exciting growth strategy. During the course of Tonka Bay’s investment, NuSource grew by pairing cutting edge technology with best-in-class service to its customer base across a growing geographic footprint. The company also closed two add-on acquisitions. “NuSource was a great investment and partnership for Tonka Bay,” said Peter Kooman, NuSource Chairman and Partner at Tonka Bay. “During our ownership period, NuSource’s management team was able to accelerate its growth trajectory through new service offerings, securing key partnerships, and complementary acquisitions.”

“I’ve enjoyed our partnership with Tonka Bay,” Mr. Erpelding commented. “They’ve been great capital partners and board members and have enabled the management team to execute our strategy to build a strong foundation for the business and to provide value-added branch transformation technology to our customer base. We are well positioned to continue to grow and thrive into the future.”

About NuSource Financial
Headquartered in Eden Prairie, Minnesota, NuSource is an ATM/ITM services, equipment, and security systems provider focused on serving regional financial institutions. As a leading provider of technology integration and installation of ATM and ITM as well other related system integration programs, NuSource enables its customers to digitize and comprehensively transform its branches. Since its founding in 1999, NuSource has built a reputation of being a flexible solutions provider that can effectively and profitably serve its customer needs.

About Tonka Bay Equity Partners
Based in Minnetonka, Minnesota, Tonka Bay Equity Partners is a private equity firm that acquires and invests in growth-oriented businesses in the highly-engineered manufacturing, business services and value-added distribution sectors. Reinhart Boerner Van Deuren served as legal counsel to Tonka Bay.

About Mosaic Capital Partners
Based in Charlotte, North Carolina, Mosaic Capital Partners is the preeminent employee ownership private equity firm, focused on acquiring lower middle market companies ($3 to $12 million of EBITDA) through an Employee Stock Ownership Plan (ESOP) buyout. McGuireWoods served as legal counsel to Mosaic Capital Partners.