Solifi has acquired Leasepath, a provider of Microsoft Dynamics-based equipment finance software, in a move aimed at extending its reach into the small-to-mid-market segment. Leaders from both companies say the deal brings scale to Leasepath and fills a strategic gap for Solifi.
Solifi, a global provider of software-as-a-service solutions for secured finance, announced in early July that it had acquired Leasepath, a SaaS platform built on Microsoft Dynamics and focused on the mid-market equipment finance sector. The deal is part of Solifi’s broader growth strategy and reflects a push to strengthen its presence in segments not previously core to its business.
“We really have a goal of being the global leader in secured finance,” Dan Corazzi, CEO of Solifi, says. “Without addressing the middle market, you really can’t be the global leader.”
For Solifi, the acquisition adds a solution tailored to smaller and mid-sized finance companies. These firms often seek simpler deployment models and integrated functionality across origination, CRM and back-office systems. Leasepath, a company that has grown organically over several decades, fits that profile.
Corazzi describes the acquisition as part of Solifi’s combined approach of organic and inorganic growth. Leasepath had long been on the company’s radar, in part due to its reputation in the industry.
“Everybody has known about Leasepath for a long time, not only internally but out in the marketplace,” Corazzi says. “They have a great reputation, a great customer base and very strong management in the low to middle market space.”
From Leasepath’s perspective, the acquisition follows a period of consistent growth and a search for investment to support further expansion.
“We had added customers, we had added product and found it difficult to add all of the scale needed as our customer base grew,” Jeff Bilbrey, formerly CEO of Leasepath and now president and general manager of Leasepath, a Solifi company, says. “We went out to market looking specifically for investment.”
Though Solifi was not initially viewed as a likely partner, Bilbrey says that changed as discussions progressed.
“As I got to know Dan and TA, it turned out, that’s exactly what it could be,” he says. “We would get access to more teammates who knew the industry. We would get access to people in territories where perhaps we had customers, but we didn’t actually have a physical footprint.”
COMPLEMENTARY POSITIONING
The two companies operate in different parts of the secured finance market. Solifi primarily serves enterprise clients with complex product and compliance needs. Leasepath focuses on clients that value simplicity, rapid deployment and an integrated user experience within the Microsoft ecosystem.
“There’s some simplicity in what Leasepath does on the Microsoft Dynamics platform and how it can attack its space,” Corazzi says. “We’re intrigued about how we can bring that to market.”
Bilbrey says that platform-centric approach has been a key part of Leasepath’s positioning.
“When customers came to Leasepath, they didn’t just get a single point solution,” he says. “They got something built on a CRM and an entire business applications platform … and
it’s all turnkey.”
This approach has resonated particularly with mid-market customers who often lack extensive in-house IT resources and prefer not to manage complex integrations.
INTEGRATION STRATEGY
Leasepath will continue to operate under its own brand, now as “Leasepath, a Solifi company.”
“The naming is intended to really make sure that our current customers and prospects understand that the Leasepath product brand does remain and goes forward,” Bilbrey says.
Corazzi emphasized that there would be no immediate changes for customers. “We don’t want to upset the apple cart,” he says. “As we move forward, they’ll get the benefit in all areas of our business to allow scalability … more customer support resources, more engineers, platform integration — but short term, no disruption.”
Initial steps include cross-training Solifi’s account executives to offer Leasepath products and evaluating areas where the two platforms can complement each other. Product integration plans are still in development.
EMPLOYEE AND CUSTOMER RETENTION
Both leaders emphasize cultural alignment as a factor in the acquisition, pointing to shared priorities around employee development and customer service.
“Solifi and Leasepath are perfectly aligned from a culture perspective,” Corazzi says.
Bilbrey notes that Leasepath employees have responded positively to the acquisition and the opportunities it creates within a larger organization. “I wanted to make sure that there
was a great opportunity for our teammates … and, undoubtedly, Solifi being a much larger organization provides that opportunity for us,” Bilbrey says.
STRATEGIC VALUE
The move into the mid-market is consistent with Solifi’s long-term strategic goals. The company’s leadership sees the combination as a way to increase market coverage geographically and by customer segment.
“We’re in areas that [Leasepath is] not,” Corazzi says. “The middle market is not as mature in some areas, so we can carry the Leasepath brand into those areas.”
Both parties see room for innovation as part of the integration, not just around artificial intelligence but in the architecture of the combined platforms.
“We want to innovate not only with AI — because everybody says that — but how do we innovate with the Dynamics platform?” Corazzi says. “How do we open up our Open Finance Platform with microservices and APIs so that Leasepath customers enjoy the benefits as well?”
Bilbrey echoes that the goal is not to reposition Leasepath, but to continue focusing on the Dynamics-based market it already serves.
“We’re going to stay right there,” he says. “We didn’t find ourselves competing a lot with Solifi’s service offering … and now we have more people who can find and fill that white space.”
LOOKING AHEAD
Corazzi outlines a set of success metrics that the teams plan to achieve within the next year: “Happy and integrated employees, maintaining customer satisfaction levels and clear and concise communication that we are one organization,” he says. “And then lastly, you don’t do an acquisition without hitting financial results.”
Bilbrey hopes customers and employees will see the combination as an enabler: “Instead of disruption, that there’s opportunity,” he says. “Instead of questions, they see new capabilities.”
Asked to summarize the deal in one word, Corazzi called it “strategic,” and Bilbrey chose “opportunity.”
FINAL OBSERVATIONS
Corazzi acknowledges the challenges of building a business like Leasepath from the ground up: “To grow a business over 30 years, without outside funding or debt, to keep customers happy, retain employees — that’s not easy to do,” he says.
Bilbrey, for his part, has admired Solifi’s longevity and sustained leadership in the secured finance space: “To stay in that pole position in the U.S. and globally for a very long time just says the people are doing the right things and the products work,” he says.
As integration progresses over the coming months, both companies say they plan to track key milestones and report on their progress. If successful, the acquisition could serve as a blueprint for how software companies in secured finance can align across market segments to broaden their reach without diluting their focus. •
Rita E. Garwood is Editor in Chief of Monitor.
