InvestCloud acquires UK fintech Babel for $20M

Californian fintech firm InvestCloud has announced a strategic acquisition of London fintech company Babel Systems for $20 million in a deal.

The strategic acquisition connects InvestCloud’s digital platform with Babel’s trading and accounting capabilities in a move to provide a unique solution for fintech companies. InvestCloud will carry on supporting clients using other accounting solutions and also serve as an open supplier to the market, the release stated.

“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,” John Wise, Chairman and CEO of InvestCloud, said.

The client base of Babel includes the market leader in Robo-Advice ‘Nutmeg’ and other progressive Wealth Managers and Family Offices. The fintech company is the modern trade and accounting firm that addresses the needs of a regulated and international marketplace. The modular Babel’s solution is API based and enables the company to be integrated with any client platform.

“Babel’s next step was to target the US market; this deal greatly accelerates that initiative. InvestCloud’s digital solutions are world class and perfectly positioned to capitalize on our API approach, as proven by their selection by JPMorgan Chase,” Steve Wise, CEO of Babel Systems, stated. “The mistake of the majority of accounting systems is that there is an inherent problem with combining warehousing and operational databases into one product. Significantly, InvestCloud has the leading Digital Warehouse, and Babel Systems has the trading and accounting capability.”

Having over 660 clients, InvestCloud’s digital platform empowers wealth managers with Client Portals, Mobility and Advisor Portals. The company is known for its proprietary PWP (Programs Writing Programs) technology and offers powerful and robust tools for data aggregation, performance analytics, and operational efficiencies, all delivered at scale on the same platform.