Nordic Capital acquires RegTech
Nordic Capital is to acquire BearingPoint’s Regulatory Technology business, RegTech, a provider of software solutions for regulatory reporting. BearingPoint will continue to serve as a strategic consulting partner and will retain a minority stake in the Company.
Founded over 25 years ago, RegTech is today firmly established as a leading European provider and market leader in Germany, Austria and Switzerland. RegTech's flagship products are used by more than 6,000 reporting firms including banks, insurance companies, supervisory authorities and financial services providers. RegTech is headquartered in Frankfurt am Main, Germany, and has 17 offices across 10 countries with a total workforce of approximately 630 employees. The Company is expected to generate revenues of close to EUR 100 million in 2020.
The Company’s solutions enable financial institutions to increase the efficiency of their regulatory and tax reporting, risk and data management processes, facilitating for them to comply rapidly with ever-changing regulatory requirements. RegTech also offers solutions supporting central banks and supervisory authorities in handling data management, processing and analysis. Through close cooperation with supervisory authorities and as a member of key standardisation committees, RegTech is actively involved in preparing and developing regulatory standards.
With Nordic Capital as its new owner, RegTech will be able to even more effectively create value for customers through investments in continued product development and enhancement in organisational capacity. The current RegTech management team will remain and work in close partnership with Nordic Capital, who will actively support RegTech’s further development and continued product innovation.
"We are delighted to welcome Nordic Capital to RegTech. The new ownership will support our further development and will also benefit our customers. With Nordic Capital we have a strong new partner at our side with extensive experience in developing and growing leading businesses in the software industry. We have used the past two years to establish the autonomy of the RegTech business within the BearingPoint Group. Together with Nordic Capital, we have formed an ambitious growth agenda and will continue to invest in our proven, reliable, and forward-looking software solution suite to extend our footprint in our core markets. Our vision is to become one of the strongest international players in the RegTech space," says Jürgen Lux, CEO of RegTech.
"RegTech's unique portfolio of software and solutions is highly acclaimed in the industry and has already earned the trust of more than 6,000 reporting firms including banks, insurance companies, supervisory authorities and financial services providers. We are very impressed by the Company’s market position, its platform and its potential for further expansion. Our broad experience in supporting the growth and development of software and technology companies makes Nordic Capital an ideal partner to play a formative role in the next phase for RegTech together with the Company’s management team," says Fredrik Näslund, Partner and Head of Technology & Payments, Nordic Capital Advisors.
Kiumars Hamidian, Managing Partner, of BearingPoint, says: "RegTech is benefitting from the increasing regulatory requirements around the world. As an independent company with a strong new owner, RegTech will have the necessary agility and flexibility to make the best possible use of these opportunities. We are pleased to retain a minority interest through BearingPoint Capital headed by Patrick Palmgren, whose team also led the M&A process from our side, and to continue create value for our joint clients."
Technology & Payments is one of Nordic Capital’s focus sectors, with 17 platform investments made since 2001. It has a strong and active sector network and a dedicated team with local presence across Northern Europe, including Germany where RegTech is headquartered.
Nordic Capital’s previous experience in this sector includes investments such as Bambora, Board International, Conscia, Itiviti, Macrobond, Trustly and Signicat. RegTech is Nordic Capital’s second Technology & Payments platform investment in 2020, following Siteimprove, a leading global Software-as-a-Service (SaaS) company providing software solutions which improves digital accessibility and compliance, announced in September.
The terms of the transaction were not disclosed. The transaction is subject to customary regulatory approvals.