Canadian financial technology group D+H has agreed to acquire US peer Fundtech in a US$1.25bn cash deal.
“The acquisition represents a continuation of D+H’s growth strategy and builds off its $1.2bn acquisition of Harland Financial Solutions in 2013,” the Toronto-based group stated.
“Fundtech provides D+H with a market-leading software platform and a suite of new solutions that complements its existing lending, payments and integrated core platforms. As a result of the acquisition, D+H will gain an extensive international footprint with a combined base of 8,000 clients, including nine of the top 10 and 32 of the world’s top 50 banks, and 190 of the top 300 US banks.”
Headquartered in New York City, Fundtech is a leading provider of financial technology to banks and corporations of all sizes in the Americas, Europe, the Middle East and Africa (EMEA) and Asia Pacific (APAC) regions. The group has around 1,500 employees and 19 offices worldwide, including development centres in the United States, India, Israel, Switzerland and the UK.
“The complexity of today’s global payments infrastructure, proliferation of channels, and an increasing desire for real-time payments is driving demand for payment solutions that allow banks to streamline payment processing while providing a more sophisticated and comprehensive view of liquidity management across various currencies and geographies,” said D+H chief executive officer (CEO) Gerrard Schmid.
“The acquisition of Fundtech puts D+H at the forefront of these trends globally, providing us with a market-leading software platform with established scale in mission-critical payment technology. It also delivers capabilities that are relevant to our existing customer base in Canada and the US while making D+H more relevant to global financial institutions and large US banks.”
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.