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US tech firm targets UK adviser market with Hubwise purchase

US tech firm targets UK adviser market with Hubwise purchase

US technology firm SS&C Technologies is targeting the UK adviser market with its purchase of challenger platform Hubwise, which it has bought for an undisclosed amount.

The UK investment platform, which counts advisers and discretionary wealth managers among its clients, will transfer to SS&C in an all-cash transaction, according to a statement published by the buyer yesterday (December 9).

The deal will see 58 employees and 51 clients in the UK transfer over to the US technology giant, which turns a profit of around $2bn (£1.5bn) annually.

The transaction, already approved by shareholders, is expected to close in 2022 subject to regulatory approvals.

SS&C said the acquisition will allow it to target the UK’s advised retail market, adding to its solutions for asset managers and discretionary wealth managers.

Hubwise provides multi-asset, multi-wrapper and multi-currency capabilities, as well as direct-to-consumer and advised platform support.

“This acquisition brings significant value to our customers engaged in delivering first-class investment and advisory services to their investors," Bill Stone, SS&C’s chairman and chief executive, said. 

"Adding Hubwise is a natural step for our successful existing partnership. In addition, the combination of SS&C and Hubwise will create a unique solution for the adviser and distributor community to better address increasing competitive and regulatory pressures."

Angus Macdonald, Hubwise’s chief executive, said his company looks forward to becoming “a strategic component” of the firm's wealth and adviser business in the region.

Macdonald set up Hubwise back in 2012 to automate funds administration and settlement.

ruby.hinchliffe@ft.com