FCG today announces the acquisition of Algorithmica Research AB (“Algorithmica”), a software technology provider of risk management and quantitative financial analytical solutions for the financial services industry.
FCG, leading Northern European experts in Governance, Risk & Compliance (“GRC”), with a strong track record of providing new and customer centered services to clients in the finance and insurance sector, now adds new capabilities to enhance and further expand its technology area and product offerings.
Algorithmica provides award-winning software solutions to help clients face the ever increasing need to address the impact of industry and regulatory changes with innovative and responsive real-time analytics.
In recent years, the GRC area has increased significantly in importance for the financial services industry, due to more increased regulation, as well as the growing complexity of the industry and its ecosystem. Companies and institutions alike must now manage both increased digitalization across all operations, as well as adding the resources and expertise needed to stay on top of new regulation and implementation. The COVID-19 pandemic, with its wide-ranging and severe impact on the financial markets, has also highlighted the need for proper risk management among financial institutions and the importance of being able to monitor and manage risk exposure.
The acquisition of Stockholm based industry leader Algorithmica, adding more than 20 high-end customers, a number of innovative and proven products and 23 experienced employees to the FCG Group, will for the existing clients ensure continued development and an enhanced customer experience, and for new customers simplify access and implementation. Clients can expect a complete offering, spanning from expert advisory and outsourcing, to implementation of company-wide financial software solutions for risk management and financial analytics. FCG Fonder, the first Swedish Fund hotel founded in 2014, will also be able to integrate Algorithmica’s capabilities seamlessly into their current and future customer offerings.
FCG Group CEO Kristian Bentzer acknowledges how the positive synergies between regulatory experts and technical know-how will impact the industry, “Our relationship with Algorithmica stretches back for the better part of a decade, and we have been frequent users of their products, such as ARMS (Algorithmica Risk Management System) and Quantlab, which we believe are best-in-class in their respective fields of application. Our long-term strategy is to be the leading European GRC firm, providing our customers with high-end expertise paired with technical software, SaaS and managed services needed for our customers to succeed and thrive. In 2018, FCG acquired RegTech pioneers Reg&Tech Solutions AB, and by now also joining forces with Algorithmica we proudly take important steps on that journey.”
“We have worked with FCG and seen them build an impressive company in a very short time. I feel excited and fortunate that the team and I from Algorithmica will join forces with FCG. as their commitment to deliver best of breed advisory and software services to the financial industry mirrors our devotion” says Niclas Holm, who stays on as CEO of Algorithmica. “Together with FCG, we will be able to expand our business internationally as well as accelerate delivery of our software solutions as a service.”
The transaction closed in the second quarter of 2020. Terms of the agreement were not disclosed.
Algorithmica Research AB is a software company with head-office and development in Stockholm, Sweden. It focuses on providing efficient tools for real-time quantitative analysis, thus enabling its customers to better price, trade, promote and risk manage financial transactions. Algorithmica was founded in 1994 and today employs around 20 employees. Our customers include a number of well-known financial institutions mainly in Stockholm and London.