Platform tech giants to merge

Platform tech giants to merge

Two of the larger firms in the UK adviser platform technology market are to combine, and will have about a 60 per cent marketshare once the deal is finalised.

FNZ has announced plans to buy GBST, paying around £150m for the Australian-listed company.

The combined company would control 60 per cent of the adviser platform technology market, with its advised platform clients having assets under administration of £243bn.

That includes assets that will move onto the FNZ platform later this year. 

Prior to the two firms combining, they had the second and third largest share of the platform technology market with Bravura having the largest one.

Many other platforms in the market use proprietary technology. 

Adrian Durham, FNZ's chief executive, said the intention is for the combined company to “expand its product and service offering in both wealth management and capital markets.” 

The deal has been recommended by the boards of both companies, and GBST shareholders will vote on it in October. 

One of GBST’s largest clients is Aegon, which faced severe problems last year in migrating Cofunds clients onto its platform.

A representative of Aegon said: “Given the recent uncertainty over GBST’s ownership we are pleased this is now reaching a conclusion.

"We have been talking to all prospective buyers of the business around their plans to invest and look forward to working with whomever is successful.”

Rival Aviva also had issues replatforming last year after it moved to FNZ.