Radiance Technologies is an employee-owned small business prime contractor for the government, providing a variety of technology services. Based in Huntsville, Alabama, with locations around the United States, Radiance provides solutions in the areas of cybersecurity, systems engineering, prototyping and integration. They also offer operational and strategic intelligence, including scientific and technical intelligence.
Need
Radiance is a fast-growing business with approximately 1,000 employees and $380 million per year in revenue. When the company outgrew the capabilities of its banking relationship partner, it sought a bank that could scale with it while also having experience working with an ESOP-owned government contractor, and provided alternative treasury management options and technology solutions that could help them improve operational efficiency. In addition to increased capabilities, Radiance wanted a larger bank that had the credit capacity to grow with it in the future.
“We had a really good relationship with our previous bank, but we wanted to move forward with a bank that had more capabilities," explains Paige Nix, Chief Financial Officer at Radiance Technologies. “We hoped to be able to automate more – especially around our treasury management services – and we were looking for ESOP support and solutions that could grow with us."
Radiance launched a formal RFP process to take competitive proposals from several banks. Prior to the formal RFP, PNC had met with the Radiance team several times over the last three years to familiarize the company with the bank and how PNC’s capability set aligns with fast growing middle market companies such as Radiance.
Solution
PNC responded to the formal RFP with a competitive package that provided a comprehensive treasury proposal, a $25 million line of credit (with an accordion feature that Radiance may exercise at the bank’s discretion), and card services.
PNC's treasury management team created a total solution that can handle upwards of $40 million in deposits and provide fully integrated receivables and payables. This team is also working with Radiance on training and onboarding to PNC’s PINACLE® platform and has helped Radiance with investment solutions to improve cash management.
PNC's ESOP team acted as an advisor to both Radiance and the bank as they discussed the repurchase obligations and ways to effectively structure the credit facility to accommodate those obligations.
PNC also has a team that specializes in government contracting and can provide advisory services to Radiance as it continues to grow as a government contractor.
Results
Since moving to PNC, Radiance has utilized its corporate card program which includes ample room for growth allowing them to scale-up their purchases if needed. The company is beginning its second phase of implementation with treasury management and has seen improvements in accounts management and internal controls. Radiance also made use of PNC's advisory teams as it works on growing the business and expanding its offices.
“We have found that the different types of expertise PNC can bring to the relationship are very helpful," Nix says. “We're in the midst of our [systems] transition and the treasury team has been very helpful." Nix adds that the training PNC provided on its PINACLE system made the transition relatively easy.
PNC's expertise with ESOPs is also unique and made them stand out during our RFP process. That's very important to us as a 100% employee-owned business.
Lastly, PNC’s main street bank model includes commitment to the local market and helped differentiate PNC during the RFP process.
With PNC, Radiance Technologies was able to:
- Scale-up its card program to meet the demand of the business
- Establish a $25 million line of credit
- Improve its treasury management technology
- Better integrate treasury management services and improve efficiency
- Add an advisor to help manage ESOP repurchase obligations
- Develop a traditional banking relationship with room to grow
