Edinburgh-based fintech FNZ swoops on software firm

FNZ chief Adrian Durham sees 'a great opportunity' on the back of the JHC acquisition. Picture: Piranha Photography
FNZ chief Adrian Durham sees 'a great opportunity' on the back of the JHC acquisition. Picture: Piranha Photography
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FNZ Group, the global fintech that has its headquarters in Edinburgh, has continued its spending spree with the ­acquisition of a wealth ­management software firm.

The business has snapped up London-headquartered JHC, a provider of technology to wealth managers including AJ Bell and Alliance Savings Trust, for an undisclosed sum.

FNZ said that the deal will ­further its position in the ­broker market by combining the two companies’ existing customer bases, as well as providing “significant” synergy opportunities.

The move comes the same week as the fintech confirmed it had completed the purchase of German investment platform company ebase in a deal worth €154 million (£137m).

JHC’s technology, which includes its Figaro, Neon and Xenon software, has more than 500,000 end users and powers £160 billion in assets under management. It has around 240 staff at its offices in London, Birmingham, ­Newcastle and Dubai.

FNZ, which employs 1,600 people and is responsible for more than £380bn in assets under administration, has pledged to invest in JHC’s software. This will include expansion into new geographical markets as well as advancing into new product areas.

FNZ chief Adrian Durham said: “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 [Asia-Pacific] 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.”

JHC chief executive John Blackman said that FNZ was “committed to investing” in the software firm’s future.

He added: “Joining forces with FNZ is the perfect way for us to grow our business. FNZ will support JHC in enhancing and growing our SaaS (software as a service) offerings and gives JHC the opportunity to offer new, broader functionality to our clients.”

Mergers and acquisitions specialist Acuity acted as adviser to JHC during the deal.

FNZ changed hands last year in a deal which valued the firm at more than £1.6bn. Founded in New Zealand, the fintech moved its head office to Canonmills, Edinburgh in 2006, and it employs hundreds of staff at its Scottish base.