The significant acquisition consolidates the combined FNZ-JHC group’s position as the most reliable and trusted technology provider to the UK wealth management and broking platform sector.
FNZ, the global financial technology company, has acquired JHC Systems Ltd (JHC), a leading UK-based provider of platform software to the wealth management industry.
As well as realising significant synergy opportunities, the acquisition results in the combined group becoming one of the top broking platforms in the UK, by bringing together FNZ’s and JHC’s respective existing customers in this market.
JHC, which is headquartered in London, provides the core technology platform to a number of the UK and Ireland’s top wealth managers and platforms including AJ Bell, Alliance Trust Savings, Brooks Macdonald, Charles Stanley, Davy, FIS Platform Securities, Interactive Investor, LGT Vestra and Quilter. Its established software solutions – JHC Figaro (Figaro), JHC Neon (Neon), and JHC Xenon (Xenon) – facilitate more effective portfolio management, account administration, regulatory compliance and risk analysis for clients and financial advisers.
The independent firm, which was founded in 1988 and is owned by its founders and employees, has established a loyal customer base over its 30 years in business. It has developed a leading market position in the UK, with more than half a million end users and £160bn in assets under management on platforms powered by JHC software. They employ around 240 people at its offices in London, Birmingham, Newcastle and Dubai.
FNZ is a global FinTech firm, employing 1,600 people to help transform the way financial institutions serve their wealth management customers. It partners with banks, insurers and asset managers to help consumers better achieve their financial goals and is responsible for more than £380 billion in assets under administration, held by around seven million customers of some of the world’s largest financial institutions.
Adrian Durham, Chief Executive of FNZ, said: “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.”
John Blackman, Chief Executive at JHC, said: “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.”
Following a rigorous selection process, JHC were expertly guided by a team from technology M&A advisors Acuity.
Matt Stamp, Partner at Acuity Advisors:
“Congratulations to John, the team and all the shareholders on this pivotal transaction in the sector. It has been a pleasure leading our team and advising JHC throughout our relationship. We have thoroughly enjoyed working closely with JHC, both well ahead of a process and then delivering a great outcome for all parties against a backdrop of significant global interest and strong consolidation across the market. JHC’s shareholders have built a unique software platform and with FNZ’s support, I expect continued leadership in the UK market to be coupled with broader technology solutions applicable to global clients and new markets.”
Richard Baker, Managing Partner at Acuity Advisors:
“JHC’s acquisition by FNZ illustrates perfectly Acuity’s capabilities as a European mid-cap technology sell side advisor. I am delighted that the Acuity team has achieved this result, endorsing Acuity’s strong credentials in the Software and Services sector.”
About Acuity Advisors LLP
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© 2019 Acuity Advisors LLP
Congratulations to John, the team and all the shareholders on this pivotal transaction in the sector. It has been a pleasure leading our team and advising you throughout our relationship. We have thoroughly enjoyed working closely with JHC both well ahead of a process and then delivering a great outcome for all parties against a backdrop of significant global interest and strong consolidation across the market. JHC’s shareholders have built a unique software platform and with FNZ’s support, I expect continued leadership in the UK market to be coupled with broader technology solutions applicable to global clients and new markets.Matt Stamp, Partner Acuity Advisors LLP
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