City National Bank, a Los Angeles, CA-based private and business bank, acquired Exactuals, a Los Angeles-based provider of innovative SaaS solutions for complex payments in the entertainment industry.
The amount of the deal was not disclosed.
Exactuals provides an innovative payment system, PaymentHub, which allows studios, unions, guilds, payroll companies, music publishers, record labels, distributors and marketplaces to provide direct deposit payments, tax document management and online reporting to rights holders, performers, managers, service providers and independent contractors across the globe.
In addition to PaymentHub, the company recently launched RAI, an artificial intelligence tool used by record labels and publishers to optimize ownership metadata for the calculation and payment of royalties.
The company also has an office in Nashville, employing about 40 colleagues.
Following the deal, Mike Hurst will remain CEO of Exactuals. He and the company’s other executives are being retained with multi-year contracts. Exactuals plans to expand to serve other businesses as a wholly owned subsidiary of City National Bank.
Led by Chairman and CEO Russell Goldsmith, City National Bank provides banking, investment and trust services through 72 offices, including 19 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada, New York City, Nashville, Atlanta, Minneapolis and Washington, D.C. In addition, the company and its investment affiliates manage or administer $64.9 billion in client investment assets. City National is a subsidiary of RBC, one of North America’s leading diversified financial services companies, which serves more than 16 million personal, business, public sector and institutional clients through offices in Canada, the United States and 34 other countries.
City National anticipates additional revenue from Exactuals’ payment processing and also expects to increase deposits and enhance the services it can offer to the bank’s entertainment clients. The added financial strength of City National and its parent company Royal Bank of Canada (RBC) will enhance Exactuals ability to serve larger clients.
In February 2017, City National participated in a $10m round of funding for Exactuals. Other investors included Entertainment Partners, TTV Capital, S-Cubed Capital and Stanford StartX Fund.