SimCorp, the European financial technology business headquartered in Denmark, has announced a €10 million ($13.7 million) acquisition of Equipos.

SimCorp, the European financial technology business headquartered in Denmark, has announced a €10 million ($13.7 million) acquisition of Equipos, the reporting software development firm operating in the wealth management space.

The purchase of the UK-based firm will “enhance and support SimCorp’s strategy of growing the business based on its single product platform – SimCorp Dimension”, SimCorp said in a statement late yesterday. SimCorp previously owned 20 per cent of the private limited company’s share capital.

The transaction highlights how the wealth management technology sector, which has seen growth driven in recent years by developments such as regulation and compliance, as well as greater client demand for rapid reporting and information, is seeing merger and acquisition activity. Just over three years ago, Swiss-based tech firm Temenos acquired Odyssey, a Luxembourg-based firm operating in a similar sector.

Equipos’ mainstay product is the award-winning Equipos Coric™ Client Communications Suite. This product is designed to enable investment management firms to improve client service through reporting while cutting operational risk and costs. Since 2008, the firm’s revenue and staffing have grown strongly, the statement said.

"The acquisition advances our product strategy of continuously building on SimCorp Dimension’s integrated portfolio of technical and business applications, while also providing selected applications as standalone solutions to leading investment managers," Klaus Holse, CEO of SimCorp, said.

“Coric enables investment managers to present increasingly complex portfolio data to their clients quickly, professionally, and cost-effectively,” Holse continued, adding: “That makes it a perfect match to our ambition of constantly providing up-to-date and modern solutions spanning the entire investment management value chain.“

SimCorp CTO Georg Hetrodt said: “The acquisition both in terms of cutting-edge technology and functionality represents an opportunity to grow our market share in the reporting domain. At the same time, I remain very mindful of the critical importance of us maintaining all of our new and old existing client relationships. We will leverage Coric’s strengths as the basis for satisfying their ongoing and growing needs within reporting.”

Equipos was founded in 1999 and employs around 50 staff, with offices in the UK, US and Canada.