Allocations, a Miami-based financial technology company that developed a private equity and venture capital platform, has acquired Salt Lake City-based Lumen Advisory and Finance. The deal, valued at $2.5 million in cash and stock, brings Lumen’s accounting automation products into Allocations’ suite of accessible private equity capabilities, the company said.
Founded in 2012, Lumen has developed that it said values communication, transparency and simplicity in accounting and tax services. Lumen’s platform that it calls “infinity engine,” is a tech-enabled accounting and tax system built specifically for funds and special purpose vehicles of all sizes, which will continue to be deployed under Allocations’ ownership.
The two companies aligned on creating an engineering-focused approach to private equity deals, eliminating complexity and increasing standardization and overall process speed, a release from Allocations said.
“Our reason for being has been to decrease the time, cost and barriers to entry that the private equity industry has hidden behind for its entire existence, and Lumen fits beautifully into that picture,” said Kingsley Advani, Founder and CEO of Allocations. “We’re thrilled to be joining a company that’s so closely aligned with our vision and values,” said Nicholas Bird, founder and president of Lumen. “Since we started Lumen in 2012, our mission has been to design our tech and processes to make accessibility, transparency and scalability as key metrics for success. Allocations does exactly what we were doing on the finance and tax side, but with a wider purview of capabilities.”
Bird will join Allocations as chief financial officer.