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Digital Digest: The Latest Tech News - Objectway

Editorial Staff, 22 January 2019

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The latest M&A deals in wealth management across Europe, Middle East and Africa.

Objectway, the European tech firm working with wealth managers, banks and other financial groups, has agreed to buy Algorfin, the software and services division of Italy’s Unione Fiduciaria.

Algorfin specialises in IT and administrative outsourcing services for asset management companies, custodian banks and other financial operators, through the Archimede, Diogene and Archimede Governance software platforms. A team of more than 100 Milan-based professionals from Algorfin will join the Objectway Group, which reaches about €75 million ($85.2 million) of annual consolidated revenues following this latest acquisition.

The financial terms of the acquisition were not disclosed.

Archimede is a solution for managing open-end and closed-end investment funds, including investors’ management, net asset value calculation, compliance and any type of regulatory compliance required. Diogene supports the management of all the activities of a custodian in the fund management area. Archimede Governance allows asset management companies to perform all the checks required by the European UCITS V regulations. Algorfin provides administrative services for back-office management and accounting to some of the premier Italian asset managers.

In addition to its core business, Unione Fiduciaria will continue to carry out IT and administrative services for trust companies and to provide its own application software to support control functions and whistleblowing managers.

"This is a significant acquisition for our Group,” Luigi Marciano, CEO of Objectway, said. 

"Unione Fiduciaria has identified in Objectway a solid and reliable partner to pass the baton for the development of the Algorfin business. With this sale, the process of focusing on fiduciary activity, the company's core business, continues and accelerates. This operation allows Unione Fiduciaria to invest additional resources for expansion and thus continue a path already started several years ago," Filippo Cappio, managing director of Unione Fiduciaria, said. 

Objectway partially financed the operation, with the support of UBI Banca and Unicredit, as lending banks, and with the assistance of Marco Carbonara from Hi.lex and of Simmons & Simmons, as legal advisors. For the execution of the deal, Objectway was assisted by: UBI Banca, as financial advisor; Giovannelli e Associati, as legal advisor; Russo De Rosa Associati, as tax advisor; and Accuracy for carrying out the financial due diligence.

Unione Fiduciaria was assisted by Synpulse, as strategic advisor; by KPMG Advisory as financial advisor, by KPMG for the vendor due diligence, and by Grimaldi as legal advisor.

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