Progress Systems Receives Investment from Melior, Ireland Strategic Investment Fund and Goodbody

Melior Equity Partners (“Melior”), a leading Irish investment firm, has agreed terms for an investment in Progress Systems Limited (“Progress”), the market-leading provider of banking software to the Credit Union sector in Ireland and the UK. The investment, made in partnership with the Ireland Strategic Investment Fund and Goodbody Capital Partners, will support Progress in its next phase of growth, permitting the company to maintain its strong focus on product development and service innovation to the benefit of Credit Unions and their members. Terms of the investment were not disclosed.

The investment will enable Progress to accelerate its product development roadmap, invest in new technologies and further enhance its software platform to help Credit Unions innovate and grow. As Credit Unions face increasing regulatory, digital, and member service demands, Progress will continue to provide the tools and support needed for Credit Unions to thrive in a rapidly evolving financial landscape. Progress currently employs 72 people and with a recruitment drive already in place, expects to grow staff levels to over 100 in the next 3-5 years.

Founded in 2003 by Tom Owens and Leo McCarthy, Progress delivers mission-critical, cloud-enabled banking software to over 220 Credit Unions across Ireland, Northern Ireland and the UK, empowering Credit Unions to serve their communities and members with modern, secure and digitally enabled financial services. The company has built a reputation for exceptional customer service, product innovation, and deep alignment with the community and social ethos of the Credit Union sector.

Tom Owens and Leo McCarthy will remain as shareholders in the business and Tom will continue in his role as Group CEO of the company, ensuring continuity of leadership, culture and vision. Several other members of the Progress senior management team will be welcomed as shareholders in the business, further aligning the management team with the long-term success of the company and its Credit Union customers.

Tom Owens, Group CEO of Progress, said:

“This partnership with leading, long-term focussed Irish investment institutions marks an exciting new chapter for Progress. With this investment from Melior, the Ireland Strategic Investment Fund and Goodbody, we will ensure that Credit Unions have the tools they need to deliver outstanding service to their members and to compete in a digital-first world. I am proud of what we have achieved over the last 20 years and look forward to working alongside our talented management team and staff to create exciting new opportunities for our customers and the wider Credit Union sector.”

Jonathan Dalton, Managing Director at Melior Equity Partners, commented:

“We are very pleased to be partnering with Tom and the superb team at Progress. Our partnership, alongside our co-investors the Ireland Strategic Investment Fund and Goodbody, will facilitate further investment by Progress in its people, technology and product innovation in support of the Credit Union sector. The Credit Union movement is a critical pillar in supporting economic activity, employment and social inclusion across Ireland and the UK and we are proud to be part of its future development.”

Brian O’Connor, Senior Investment Director at Ireland Strategic Investment Fund, commented:

“This investment in Progress aligns well with ISIF’s mandate of supporting indigenous Irish businesses and wider economic activity in Ireland. Progress plays a crucial role in providing technology and innovative services to the Credit Union sector and its 3.7 million members in Ireland. We look forward to working with Progress as it scales in Ireland and internationally, supporting continued investment in its team and development of new innovative products”

Minister of State for Financial Services, Credit Unions, and Insurance, Robert Troy T.D. said:

“I welcome the investment by an Irish consortium, including the Ireland Strategic Investment Fund, in Progress, who are providing critical banking software to the Credit Union sector. Innovation in digital banking services is crucial for the Credit Union sector, in order to meet member expectations and further compete in a digital world. This investment is testament to the growth opportunities which are open to the sector. It is particularly positive that it is coming from within Ireland, reflecting the brand strength Credit Unions have throughout the country. This year is an important one for Credit Unions, as I embark on delivering a collaborative Credit Union strategy with the sector. Investment like this reinforces that work and the opportunities ahead.”

Bank of Ireland provided corporate banking support to the consortium’s investment in Progress.

The investment is subject to approval from the Competition and Consumer Protection Commission (CCPC).