Nordic Capital to acquire BearingPoint RegTech

Venture capital firm Nordic Capital has agreed to buy BearingPoint RegTech from its parent company BearingPoint.

The VC aims to support BearingPoint RegTech by investing in its continued product development, enhancing its organisational capacity and expanding its international footprint.

BearingPoint RegTech is a developer of software solutions for regulatory reporting. BearingPoint will continue to serve as a strategic consulting partner and will retain a minority stake in the enterprise.

The current RegTech management team will remain and work in close partnership with Nordic Capital, who will actively support RegTech’s further development and continued product innovation.

“We are delighted to welcome Nordic Capital to RegTech,” said Jürgen Lux, CEO of BearingPoint RegTech. “The new ownership will support our further development and will also benefit our customers. With Nordic Capital we have a strong new partner at our side with extensive experience in developing and growing leading businesses in the software industry.

“We have used the past two years to establish the autonomy of the RegTech business within the BearingPoint Group. Together with Nordic Capital, we have formed an ambitious growth agenda and will continue to invest in our proven, reliable, and forward-looking software solution suite to extend our footprint in our core markets. Our vision is to become one of the strongest international players in the RegTech space.”

BearingPoint was founded more than two decades ago as an offshoot to the leading consultancy KPMG.

Today BearingPoint RegTech has become a renowned European provider and market leader in Germany, Austria and Switzerland. RegTech’s flagship products are used by more than 6,000 reporting firms including banks, insurance companies, supervisory authorities and financial services providers. RegTech is headquartered in Frankfurt am Main, Germany, and has 17 offices across ten countries with a total workforce of approximately 630 employees. The Company is expected to generate revenues of close to €100m in 2020.

Nordic Capital has a history of supporting FinTech and RegTech companies. In 2018, it acquired Sweden-based FinTech data company Macrobond. The same year, the VC firm also bought payment company Trustly from Bridgepoint. It has also backed Bambora, Board International, Conscia, Itiviti and Signicat.

“RegTech’s unique portfolio of software and solutions is highly acclaimed in the industry and has already earned the trust of more than 6,000 reporting firms including banks, insurance companies, supervisory authorities and financial services providers,” said Fredrik Näslund, partner and head of technology and payments at Nordic Capital.

“We are very impressed by the company’s market position, its platform and its potential for further expansion. Our broad experience in supporting the growth and development of software and technology companies makes Nordic Capital an ideal partner to play a formative role in the next phase for RegTech together with the company’s management team.”

Kiumars Hamidian, Managing Partner of BearingPoint, added, “RegTech is benefitting from the increasing regulatory requirements around the world. As an independent company with a new strong owner, RegTech will have the necessary agility and flexibility to make the best possible use of these opportunities. We are pleased to retain a minority interest through BearingPoint Capital headed by Patrick Palmgren, whose team also led the M&A process from our side, and to continue create value for our joint clients.”

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