Global fund data and technology company FE fundinfo will acquire fund registration and regulatory services firm Fundsquare.
Fundsquare is a wholly owned subsidiary of the Luxembourg Stock Exchange (LuxSE) which in turn will become an investor in FE fundinfo.
This is FE fundinfo’s fifth acquisition in a little under two years and follows a spree across the world including the UK (CashCalc), Denmark (FundConnect), Australia (Zenith) and Liechtenstein (CSSP).
FE fundinfo’s said the latest acquisition will build on its growing operation in Luxembourg and support the publiFund platform.
This is a centralised platform for data connects the whole ecosystem of a fund and allows global fund managers to run the fund throughout its lifecycle.
Fundsquare was established by LuxSE in 2013 to facilitate cross-border fund distribution through the collection and distribution of information.
Today it provides services that facilitate cross-border investment in fund distribution from inception to filing and distribution.
FE fundinfo chief executive Hamish Purdey said: “Fundsquare’s reputation as an independent fund registration and regulatory reporting champion is renowned across Europe. We believe our services are highly complementary and the deal will bring together two industry leaders in fund data and reporting.
“By combining our services, the scope for greater efficiencies and product innovation will dramatically increase and the industry will benefit greatly from the enhanced product and service integration. Luxembourg will house our centre of excellence for regulatory reporting with comprehensive coverage of key European fund jurisdictions.
“We look forward to working together to enhance our services to meet the needs of the entire investment management value chain, including fund managers, distributors, fund service providers, regulators and investors.”
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Commenting on what the deal means for the Luxemburg Stock Exchange chief executive Julie Becker added: “Fundsquare is a highly successful company, and we are extremely proud of what the team has achieved so far. To continue to support Fundsquare’s future growth and especially its international expansion, we decided to team up with a strong player able to provide the necessary resources, competences and network.
“We have found the best partner in FE fundinfo and we are confident that this new ownership structure will bring the Fundsquare team many new opportunities for innovation, growth and scale in a rapidly changing environment.
“The Luxembourg Stock Exchange will remain involved through its stake in the FE fundinfo group, and we are delighted to form an active part in the company’s ambitious growth journey, both in Luxembourg and beyond.”
Explaining the significance of the acquisition for the wider market Financial Technology Research Centre managing director Ian McKenna said: “This is the fifth acquisition by FE in the past 15 months. Adding this to buying CashCalc in the UK, which really extended its support for advisers, the Lichtenstein based Center for Social and Sustainable Products (CSSP) gave them exceptional ESG credentials.
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“Meanwhile FundConnect made it a significant player in the Nordics and Zenith the Australian fund rating and model portfolio business added to FE fundinfo’s existing Australian assets is another significant step.
“In the UK it can point to delivering substantial savings for advisers who have leveraged the depth of integration now provided between two products that were very popular in their own right. Customers of each proposition can gain by adding the other.”
He added: “Creating a pan-European infrastructure for data and reporting should enable FE to offer similar synergies and savings to fund managers around the world.
“The deal is a further example of how the company is building both a breadth of propositions and a global footprint. This is a great British business turning itself into a global player. The Luxembourg Stock Exchange becoming and investor in the business is a huge endorsement in the company and the management team. Certainly one to watch over the months ahead.”
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