FE Fundinfo has bought Luxembourg-based fund registration and regulatory services provider Fundsquare for an undisclosed sum.
The companies said the purchase will create a pan-European “champion in fund data” which aims to transform cross-border fund distribution.
The companies connect two core elements of the fund industry value chain – the registration and fund distribution processes.
By combining the two, it offers the ability to consolidate data management, product registration, client reporting, regulatory reporting and dissemination on one open architecture platform.
The companies said this streamlining of the fund lifecycle delivers lower operational and regulatory risk, increased efficiencies, and provides flexibility and scale in the distribution of funds.
FE chief executive Hamish Purdey said: “The closing of this deal marks a new and exciting chapter in the development of our offering to fund managers and distributors globally. We are now positioned to transform cross-border fund distribution by enabling efficiencies for our clients in data management, fund registration and reporting.
“Through the timely provision of the highest quality fund data and information, we will ensure that our clients in the global asset management industry deliver the best investment products either directly to investors or through their distribution partners.”
Fundsquare was established in 2013 by Luxembourg Stock Exchange to serve global asset managers and fund industry service providers.
The acquisition of Fundsquare will build on FE's established operations in Luxembourg, creating a local centre with more than 100 fund and regulatory experts.
Post-acquisition, the combined group will have a global workforce of more than 1,000 across the United Kingdom, Europe, Asia and Australia.
Fundsquare managing director and chief operating officer Maxime Aerts said: “Growing competition in the asset management industry, along with a need for more precise governance and risk mitigation requires strong data management and disclosure capabilities.
“Now that we have joined the FE Fundinfo group, we have enormous potential to expand our reach and go on to manage the fund data management lifecycle in more jurisdictions than ever before, and we are eager to share our plans with our clients and partners.”
Purdey added: “The culture of FE Fundinfo and Fundsquare are both centred on a deep commitment to data quality, regulatory expertise and client service. This shared culture and commitment makes us a powerful team going forward into the future.”
Earlier this year, FE Fundinfo bought Funds360, a French fund data and solutions provider.
The acquisition was part of a wider expansion for FE Fundinfo, which in recent months has bought an Australian-based research and adviser technology provider, and a Danish fund data and tech firm.
In May last year the group bought cashflow planning provider CashCalc.
FE Fundinfo was formed from the merger of FE, FundInfo and F2C in 2017, and provides investment research and portfolio services to IFAs, including FE Analytics.
sonia.rach@ft.com
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