Edinburgh fintech gains new owner in £1.6bn global deal
● Transaction with Al Gore’s firm is one of world’s largest fintech deals this year
An Edinburgh-headquartered global fintech business has changed hands in a deal which values the firm at more than £1.6 billion.
Private equity investors HIG Capital and General Atlantic have sold their two-thirds stake in FNZ, which provides technology services to asset managers, banks and insurers, to Generation Investment Management – the firm cofounded by former US vicepresident Al Gore – and a Canadian pension fund.
The acquisition is one of the world’s largest fintech transactions this year, subject to regulatory approval, and is understood to be worth £1.65bn.
FNZ, which moved its head office from New Zealand to Canonmills, Edinburgh, in 2006, develops wealth management platform technology used by financial services firms including Standard Life Aberdeen, Santander and Lloyds Bank.
The company is responsible for more than £330bn in assets under administration held by around five million customers.
FNZ currently has some 1,400 employees across its UK and overseas offices, with 400 of these based in Scotland.
Around 400 FNZ employees are shareholders, who will continue to own about one third of the equity of the company following this transaction.
Adriandurham,chiefexecutive and founder of FNZ, said: “Under HIG’S ownership, we have successfully partnered to deliver exceptional growth and value creation for our investors, whilst driving down long-term costs for financial institutions and consumers alike.
“We see a unique opportunity to create a global-scale platform for wealth management. This requires a willingness to invest for the long-term.
“The firm’s 400 employee shareholders are firmly committed to this outcome and Cdpq-generation is the perfect partner, given its unique eight to 15 year time horizon and focus on sustainable investments.”
The transaction will be the first investment in a newly created partnership between Generation and Quebecheadquartered pension fund CDPQ.
David Blood, senior partner and co-founder at Generation, said: “FNZ represents an outstanding first investment for our new partnership. It is an exceptional company with a management team that has demonstrated its ability to innovate and grow in the fastmoving fintech sector.
“We believe our long-term approach will suit the company and allow it to continue to invest in its technology and service proposition to the benefit of savers and pensioners, as well its employees, customers and investors.”
Carl Harring, managing director at HIG, added: “HIG is proud to have been a longterm partner of FNZ.
“FNZ has delivered an outstanding return for HIG and its investors. We look forward to following the company as it continues on its rapid global growth path.”