Tonka Bay Announces Sale of NuSource Financial

MINNETONKA, MN  (February 16, 2021) — Tonka Bay Equity Partners announced the sale of NuSource Financial (“NuSource”) to an employee stock ownership plan (ESOP) led by Mosaic Capital Partners.  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.

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 Shane Slominski, NuSource Board Member 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.”

Pagemill Partners, the technology M&A division of Duff & Phelps, served as the exclusive financial advisor to NuSource.

About NuSource

Headquartered in Eden Prairie, Minnesota, NuSource is a leading bank technology, equipment, and security systems provider focused on serving regional financial institutions.  As a leading provider of technology integration and installation of ATM and branch transformation equipment, NuSource enables its customers to digitize and comprehensively transform its branches.  For additional information on NuSource, visit the company’s website at nusourcefinancial.com.

About Tonka Bay Equity Partners
Based in Minnetonka, Minnesota, Tonka Bay has been Building Bigger, Better Businesses® for over 25 years. 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. For more information, call (952) 345-2030 or visit tonkabayequity.com.

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