US technology platform InvestCloud, a startup that provides cloud-based software to the securities industry, today announced its acquisition of London-based fintech company Babel Systems Limited for $20 million.
InvestCloud’s acquisition of Babel Systems will mark the completion of integrating the full robo solution stack and will also be used to provide a true cloud alternative to solutions from incumbents like FIS SunGard and SS&C Advent, according to a corporate statement.
The Babel System’s straight-through processing capabilities across funds, equities and bonds will help InvestCloud to address and support the anticipated growth in the number of clients. In addition, the deal will add trading, accounting, and enhanced robo capabilities to InvestCloud’s digital platform.
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Established in 2010 by four founders, Los Angeles-headquartered InvestCloud says it offers thousands of “lightweight applets” that can be configured within days rather than months. The company started selling products in 2012. Today, it has 660 client firms supporting $1.5 trillion in assets.
JPMorgan-backed fintech company
Earlier in 2016, JPMorgan Chase, the biggest U.S. bank by assets, had hired and taken a stake in InvestCloud. Beginning in 2017, the bank will use InvestCloud to customize website dashboards and mobile apps for clients ranging from individuals with investments of $1,000 to managers of family investment offices with $1 billion or more.
Babel Systems is a London-based fintech company that was founded in 2008 to offer back office solutions for wealth management firms. The company delivers comprehensive functionality in a modular fashion, helping firms across several areas including settlements, custody, accounting, corporate actions, payments, compliance and portfolio management. Babel’s client base includes Nutmeg, a recognized provider in the robo-advice sector, and other progressive wealth managers and family offices.
John Wise, Chairman and CEO of InvestCloud, commented: “InvestCloud needed an extremely high-volume and low-cost trading and accounting (book-keeping) solution designed for the cloud. Babel is the answer. Babel is designed for the international market and is the most modern platform in the world designed for Robo and Wealth; however, it’s also versatile and can be applied to all major financial markets.”
Steve Wise, CEO of Babel Systems, added: “Babel is the most recently developed Books of Record platform including investment management (IBOR), accounting (ABOR) and settlement (SBOR). Uniquely, it is designed for all international markets, demonstrated by the Nutmeg deployment in the UK and a leading Singapore-based Robo. Babel’s next step was to target the US market; this deal greatly accelerates that initiative. InvestCloud’s digital solutions are world class and perfectly positioned to capitalize on our API approach, as proven by their selection by JPMorgan Chase.”