Platform technology firm FNZ has acquired software provider JHC Systems, which serves the wealth management industry, for an undisclosed sum.
The deal will bolster FNZ’s position in the UK and comes hot on the heels of it completing the purchase of German investment platform, ebase.
JHC is headquartered in London and provides the “core technology platform” to several wealth managers and platforms in the UK and Ireland, including AJ Bell, Alliance Trust Savings, Brooks Macdonald, Charles Stanley, Davy, FIS Platform Securities, Interactive Investor, LGT Vestra and Quilter.
The independent firm was founded in 1988 and has grown to more than half a million end users and £160bn in assets under management on platforms powered by JHC software.
It currently employs around 240 people at its offices in London, Birmingham, Newcastle and Dubai.
FNZ chief executive Adrian Durham says: “JHC has a market leading and well-established technology platform in the UK, combined with new state-of-the-art digital solutions.
“We see a great opportunity to not only consolidate our combined position in the UK market, but to take JHC technology propositions into new strategic territories – such as APAC and continental Europe – and into new product areas.”
“JHC’s founders and management team have done a fantastic job in developing a loyal client base of more than 60 financial institutions across all asset classes, currencies and instruments. We look forward to working with their team to maximise the potential of JHC’s business over the coming years.”
JHC software solutions include Figaro, Neon and Xenon, which according to the companies facilitate “more effective” portfolio management, account administration, regulatory compliance and risk analysis for clients and financial advisers.
FNZ partners with banks, insurers and asset managers and is responsible for more than £380bn in assets under administration.
JHC chief executive John Blackman says: “Joining forces with FNZ is the perfect way for us to grow our business. It is great news for our clients as FNZ is committed to investing in Figaro, Neon and Xenon and supporting our plans for the future.
“FNZ will support JHC in enhancing and growing our SaaS offerings and gives JHC the opportunity to offer new, broader functionality to our clients.
“This deal will provide the scale required for JHC to compete in the increasingly competitive fintech world, particularly in wealth management where regulatory compliance and cyber security are of utmost importance.”