HIG Capital has sold its stake in platform tech provider FNZ in a deal valuing the company that powers some of the UK’s largest platforms at £1.65bn.
Institutional investor La Caisse de dépôt et placement du Québec and Generation Investment Management will acquire holdings in the business.
The deal is subject to regulatory approval and is the first collaboration between the Canadian institutional investor and Generation – a British-American sustainability investment management firm co-founded by former US Vice President, Al Gore.
FNZ holds £330bn in assets under administration from around five million customers and has faced continued backlash this year over its role in managing the technology behind Aviva’s platform as it underwent a bungled replatforming .
Despite that, the sale of Edinburgh-headquartered FNZ which was founded in New Zealand in 2004, is the largest fintech transaction this year.
CDPQ and Generation are shelling out £1.65bn for the provider, which was valued between £1bn and £2bn in a Sky News report last month.
Generation senior partner David Blood says it will be looking for a long-term approach with CDPQ that will allow FNZ to continue to invest in its technology.
He says: “FNZ represents an outstanding first investment for our new partnership. It is an exceptional company with a management team that has demonstrated its ability to innovate and grow in the fast-moving fintech sector.”
CDPQ executive vice president and head of private equity Stephane Etroy says: “We have researched the best global financial services technology businesses with a focus on companies that have long term, truly global-scale potential. We are extremely excited to partner with the FNZ management team.”