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UK’s Starling Strikes 10-Year Software Deal with Canada’s Tangerine, Plans 100 New Hires

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British digital lender Starling Group announced on Tuesday a 10-year agreement with Canada’s Tangerine Bank, owned by the Bank of Nova Scotia, to upgrade the bank’s core software systems using its Engine by Starling technology platform. The deal marks Engine’s largest contract to date and represents a major step in Starling’s global expansion.

Under the agreement, Tangerine will migrate its digital banking operations to Engine’s cloud-based Software-as-a-Service (SaaS) platform. The partnership follows Engine’s recent expansion into North America, with new offices in Toronto and New York, and makes Tangerine its first North American client.

As part of the expansion, Engine plans to hire more than 100 new employees, according to a company spokesperson. Engine by Starling, spun off from Starling Bank in 2022, already serves clients such as Salt Bank in Romania and AMP Bank GO in Australia.

Starling’s customer base has grown from 43,000 in 2017 to 4.6 million in 2025, driven by its innovative digital banking model. However, the bank — like other UK challengers — has faced challenges maintaining revenue growth amid fierce competition. To diversify, Starling has focused on providing its software solutions to other financial institutions worldwide.

The company’s growth has come with regulatory scrutiny. Britain’s financial watchdog fined Starling £29 million last year for weaknesses in financial crime controls, though the bank says it has since addressed the issues and strengthened its governance.

Cascadia Capital Expands Into Tech M&A With New Silicon Valley Office

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Cascadia Capital, a U.S.-based boutique investment bank, is making a strategic push into technology mergers and acquisitions (M&A) with the opening of a new Silicon Valley office and the appointment of veteran banker Jonathan Cantwell to lead its new technology group, company executives told Reuters.

NEW LEADERSHIP AND STRATEGIC FOCUS

Cantwell, previously partner and head of software investment banking at GP Bullhound, will oversee the firm’s technology advisory practice, focusing on enterprise Software-as-a-Service (SaaS) and artificial intelligence (AI) companies.

He will lead recruitment for the new office and aims to build a 20-member team specializing in advising growth-stage technology firms with enterprise values of up to $2 billion.
Cascadia plans to leverage Cantwell’s strong M&A track record, which includes PeakAI’s sale to UiPath (PATH.N) and Compendium’s sale to Oracle (ORCL.N).

“We’re at this inflection point where many high-growth software and AI companies will need experienced advisors,” Cantwell said. “It’s the right moment to build a new practice focused on enterprise automation, data analytics, and digital applications.”

INVESTMENT BACKING AND GROWTH PLANS

Cascadia’s expansion is supported by Atlas Merchant Group, led by former Barclays CEO Bob Diamond, which made an eight-figure investment in Cascadia in 2022 to fuel its growth.
Diamond highlighted that the move aligns with the convergence between digital assets, traditional finance, and the increasing dominance of AI-driven innovation in financial markets.

“You have the importance of software, the importance of AI, and the merging of traditional finance with digital technologies,” Diamond said. “It couldn’t be a better time to enter the tech M&A space.”

EXPANDING BEYOND CORE SECTORS

Cascadia Capital, led by CEO Michael Butler, a former Morgan Stanley executive, already operates successful M&A practices in consumer goods, food and agribusiness, industrials, and business services.
With its new Silicon Valley hub, the firm aims to position itself as a go-to advisor for mid-market software and AI companies, helping them navigate consolidation, fundraising, and acquisition opportunities amid a surge in sectoral deal activity.

As global demand for AI-driven enterprise software and automation technologies accelerates, Cascadia’s new practice underscores a broader trend of boutique advisory firms pivoting toward high-value, data-centric industries.

Advent International to Acquire Insurance Software Firm Sapiens for $2.5 Billion

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Israeli insurance software provider Sapiens International (SPNS.O) announced on Wednesday that it will be acquired by U.S. private equity firm Advent International for $2.5 billion in cash, as Advent continues its focus on the insurance technology sector amid growing adoption of AI-powered solutions.

DEAL DETAILS

  • Purchase Price: $43.50 per share in cash, representing a 47.5% premium over Sapiens’ last Nasdaq close of $29.50.

  • Ownership Structure: Sapiens will become privately held post-acquisition, while existing shareholder Formula Systems retains a minority stake.

  • Strategic Intent: Advent aims to accelerate Sapiens’ AI and SaaS-driven innovation, enhancing technology and customer-centric solutions for insurers.

INDUSTRY CONTEXT

  • Insurance companies are increasingly deploying AI-powered software to improve efficiency, reduce costs, and drive profitability.

  • Advent has actively pursued deals in the sector, including exclusive negotiations for Kereis, the leading housing protection insurance broker in France.

STATEMENTS FROM EXECUTIVES

  • Douglas Hallstrom, Advent Director: “Insurers are increasingly turning to technology to help unlock growth and profitability… We will work with Sapiens to accelerate investment into technology innovation, AI, and customer centricity.”

  • Guy Bernstein, CEO of Formula Systems: “Formula will continue to retain ownership in Sapiens and is excited to partner with Advent to accelerate the transition to AI and SaaS.”

RECENT DEAL ATTEMPTS

  • Earlier in August, Advent failed to acquire Spectris, a British scientific instruments maker, after it opted for a rival offer from KKR worth £4.8 billion ($6.48 billion).

CONCLUSION
The acquisition underscores the growing importance of AI and digital transformation in the insurance sector, while marking Advent International’s continued commitment to technology-driven investments in insurance software.