Fund Administrators - Tech Acquisitions

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Fund Administrators - Tech Acquisitions

Large fund administrators, such as SS&C Technologies, State Street, Public Pension Capital (PPC), Morgan Stanley, Apex Fund Services, SEI, and Northern Trust, have gravitated towards mergers and acquisitions with tech companies in the past five years. These companies, which include Belvedere Advisors Services, Solium, CenPOS, and more, cover a wide range of technological services that are advantageous to fund administrators. This includes in-house software development, digital investment advisory tools, and payment systems.

tech companies acquired by fund administrators in the past five years

Company #1: Belvedere Advisors Services LLC

  • Northern Trust Asset Management, a leading investment manager and fund administrator, acquired Belvedere Advisors LLC in July 2019 for an amount not disclosed to the public.
  • Belvedere Advisors LLC provides digital investment advice for financial institutions through technologies and tools such as online client onboarding, client demographic profiling tools, and portfolio construction.

Company #2: Solium Capital Inc.

  • Morgan Stanley, a global provider of "investment banking, securities, investment management, and wealth management services," acquired Solium Capital Inc. in May 2019 for $900 million.
  • The deal brought Solium's software-as-a-service (SaaS) technology for financial reporting and compliance in to expand Morgan Stanley's wealth management business.

Company #3: CenPOS

  • Miami-based CenPOS was bought by Elavon, a global payments provider and large fund administrator U.S. Bancorp subsidiary, in January 2019 for an undisclosed amount.
  • CenPOS provides "integrated payment solutions" to the automotive, travel and entertainment (T&E), and general business-to-business industries.

Company #4: Salentica

  • Major hedge fund administrator, SS&C Technologies, acquired Salentica in October 2016 with no further details regarding the price of the acquisition.
  • Salentica, a Customer Relations Management (CRM) platform, and its team of CRM experts was acquired as a means to expand SS&C's CRM capabilities and to improve existing systems in a large, complex firm such as SS&C.

Company #5: Eze Software

  • In July 2018, SS&C Technologies acquired Eze Software with a $1.45 billion deal.
  • Eze Software provides investment management solutions and portfolio accounting tools to support the streamlining of workflows for asset managers.

Company #6: Omnium LLC

  • The financial holding company, Northern Trust Corporation LLC, which had previously acquired Omnium LLC's hedge fund administration services in 2011, brokered an acquisition deal of an undisclosed amount in July 2018 for Omnium LLC's technology services.
  • The acquisition of Omnium Technology was intended to foster in-house technology development to support Northern Trust's financial services to asset managers, family office institutions, and alternative hedge fund managers.

Company #7: DST Systems Inc.

  • Earlier, in January 2018, SS&C Technologies expanded its reach with tech companies with the $5.4 billion acquisition of DST Systems Inc.
  • DST Systems Inc. provides financial software and healthcare specialized technology and advisory services to its clients.

Company #8: Viteos Fund Services

  • Public Pension Capital and Five W Capital acquired Viteos Fund Services, a leading provider in technology and services for the investment management industry, in April 2017.
  • Public Pension Capital is a private equity fund based in New York City that invests in a small range of industries, including financial services, business & industrial services, healthcare, and specialty chemicals.
  • FiveW Capital is a private equity group that invests in founder-led companies that are data, analytics, and technology-intensive.
  • The financial terms of the acquisition were not publicly disclosed.

Company #9: DBV-X

  • In May 2016, Bank of New York (BNY) Mellon negotiated a deal that acquired the repurchase trading venue, DBV-X, for an undisclosed amount.
  • DBV-X offers an "electronic peer-to-peer market" for making "secured deposits and collateral transactions."

Company #10: Lytx

  • Lytx, a telematics-based tech company, was acquired by private equity firm GTCR in February 2016 for $500 million.
  • Lytx provides video-based telematics and analytics to fleets around the world.
  • Lytx's innovative technology and analytics capabilities were acquired by GTCR to expand the scope of technology services offered by the firm.

Company #11: Lexmark International Inc.

  • Lexmark, a Kentucky-based technology firm that supports imaging and printing services for businesses, was acquired by Apex Techology Co., Ltd. (Apex) and PAG Asia Capital (PAG) in April 2016.
  • "Apex Technology Co., Ltd. designs, manufactures, and markets inkjet and laser cartridge components for remanufacturers and distributors," while PAG Asia Capital is a leading private equity firm in Asia that invests in "private equity, real estate, and absolute return strategies."
  • The acquisition was estimated to have cost $3.6 billion.

Company #12: Varden Technologies

  • In September 2015, SS&C Technologies, one of the top players in the global financial services software and software-enabled services industry, acquired Varden Technologies, a top provider of client and advisor communication solutions for investment firms, for an undisclosed amount.
  • The acquisition expands SS&C's ability to provide technology to support end-to-end communications for customers.
Sources
Sources

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  • "Emotomy is an end-to-end, highly customizable digital investment advice platform for financial institutions. "
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  • "SS&C Technologies Holdings, Inc. ... a global provider of financial services software and software-enabled services, today announced it has entered into a definitive agreement wherein SS&C will acquire Eze Software (Eze Software)"
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  • "SS&C will purchase DST in an all-cash transaction for $84 per share, equating to an enterprise value of approximately $5.4 billion"
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  • "To be able to copy & paste content to share with others please contact us at subscriptions@peimedia.com to upgrade your subscription to the appropriate licence"
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  • "The acquisition closed on January 8, 2019. Financial terms of the deal were not disclosed."
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  • "BNY Mellon confirms that it is in talks with DBV-X, the electronic peer-to-peer market for secured deposits and collateral transactions"
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  • "SS&C Technologies Holdings, Inc. ... today announced the acquisition of Varden Technologies, a leading provider of client and advisor communication solutions for investment firms"
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  • "Lytx, the leading maker of cameras for monitoring truck drivers, will be acquired by the Chicago-based private equity firm GTCR for a cash payment of $500 million."
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  • "SS&C Technologies has struck a deal to acquire Customer Relationship Management platform developer Salentica in a move that will bolster its portfolio of CRM solutions"