Numerix, a leader in capital markets risk management technology, announced today that it has acquired FINCAD, a leading analytics company in the pricing and risk analytics of financial derivatives and fixed income products, from Zafin, a leader in Product and Pricing SaaS solutions for global financial institutions.
The combination of Numerix and FINCAD will bring together two of the industry’s most preeminent independent providers of analytics for the capital markets. Together, Numerix and FINCAD are deeply penetrated across the capital markets ecosystem, including sell-side, buy-side, corporate and insurance market customers. Today, thousands of financial institutions across the globe - either directly or through the combined partner channel - will be making trading and risk management decisions with the use of analytics and SaaS platforms provided by Numerix.
“Bringing together Numerix and FINCAD is a significant moment for all capital markets participants. Analytics are the differentiators in terms of making the right investment decisions. This combination is a game changer for the industry, allowing Numerix clients to use the most robust front-to-risk decision making software with their choice of best of breed analytics,” said Steven R. O’Hanlon, President and CEO of Numerix. “While both companies started at a similar point in time but took on servicing different segments of the market, it has become clear to me through the process that FINCAD shares a similar DNA to Numerix. This is a natural fit and I am very excited about the opportunities that lie ahead.
“Zafin has over the past year worked closely with the FINCAD team to ensure they are set up for growth with successful executions of revamped product and customer success strategies and Numerix now provides FINCAD an excellent avenue to realize their full potential,” said Al Karim Somji, CEO of Zafin. “I want to thank the FINCAD team for their dedication and commitment and wish them all success as part of Numerix while enabling Zafin to continue its focus on empowering global financial institutions as they accelerate their efforts to modernize and transform their business with Zafin’s Product and Pricing SaaS platform.”
Scott Niehaus, Director at Genstar Capital, said, “Targeted acquisitions were a key part of our strategy when we invested in Numerix last year. The combination with FINCAD will expand Numerix’s capabilities in the complex regulatory environment and provide greater value to its clients. We are committed to working with the Numerix team to identify additional opportunities to further build out the company.”
Willkie Farr & Gallagher LLP and Davies Ward Phillips & Vineberg LLP served as legal counsel and Razorhorse Capital served as financial advisor to Numerix. Scotiabank served as financial advisor and Fasken Martineau DuMoulin served as legal counsel to Zafin. Terms of the transaction are not disclosed.
Numerix is the leading provider of innovative capital markets technology solutions and real-time intelligence applications for trading and risk management. Numerix is dedicated to driving a more open, fintech-oriented, digital financial services market. Built upon a 20+ year analytical foundation of deep practical knowledge, experience and IT understanding, Numerix is uniquely positioned in the financial services ecosystem to help its users reimagine operations, modernize business processes and capture profitability.
Backed by more than 30 years of experience, FINCAD is a pioneer in providing pricing, modeling and risk analytics to financial institutions such as asset management firms, banks, insurance companies, hedge funds as well as over 75 Alliance Partners. From the most basic to the bespoke, FINCAD has the financial engineering expertise to address any derivative challenge. FINCAD empowers global organizations to optimize risk and return through simplified and direct control over the valuation and analytics of derivatives. With the most precise, transparent and scalable technologies for pricing derivatives and fixed-income products, FINCAD’s highly dedicated customer support team goes above and beyond to help clients achieve their goals. FINCAD is headquartered in Vancouver, Canada.
Zafin, the global leader in SaaS cloud-native product and pricing solutions, is a trusted partner to the world’s most customer-centric financial institutions. Zafin’s product and pricing platform empowers banks of all sizes to center their customers, grow relationships and drive revenues. The Zafin platform separates product and pricing from core processing to accelerate progressive modernization, enabling digital transformation and deliver personalization at the relationship level. A typical Zafin installation integrates easily with most back-end systems and customer-facing channels to increase product and pricing efficiency and agility, drive interest and non-interest income, and deliver a positive ROI—often in one year or less. To learn more, please visit: https://zafin.com
Genstar Capital is a leading private equity firm that has been actively investing in high-quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar currently has approximately $35 billion of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrials, and software industries.