London-based online trading technology company Babel Systems is being acquired by US fintech firm InvestCloud in a $20m deal.
Founded in 2008, Babel’s trading and accounting platform aims to address the needs of the heavily regulated and international marketplace.
The company says the solution is modular and API-based in its design to enable integration with any client platform.
It and investors reportedly spent £6m developing the product.
Babel counts London-based robo-advisor Nutmeg, which has raised almost $90m in funding, among its clients.
InvestCloud’s platform is designed to empower wealth managers with client, mobility and advisor portals and supports more than $1.6 trillion in assets across more than 660 institutional clients.
The Los Angeles-based firm has raised more than $55m in funding to date including an undisclosed private equity round in September last year.
The strategic acquisition will connect InvestCloud’s platform with babel’s trading and accounting capabilities.
InvestCloud says it will also continue to support clients using other account solutions and will serve as an open supplier to the market.
The company’s chairman and CEO said: “InvestCloud needed an extremely high-volume and low-cost trading and accounting solution designed for the cloud.
“Babel is the answer. Babel is designed for the international market and is the most modern platform in the world designed for Robo and Wealth; however, it’s also versatile and can be applied to all major financial markets.
“InvestCloud’s acquisition of Babel Systems will mark the completion of integrating the full Robo solution stack and will also be used to provide a true cloud alternative to solutions from incumbents like FIS SunGard and SS&C Advent.”
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