California-based fintech firm InvestCloud Inc has acquired London-based Babel Systems Limited for USD20 million. Babel’s client base includes robo-adviser Nutmeg among other wealth managers and family offices.
Babel offers a highly modular and API based trade and accounting platform. InvestCloud’s digital platform offers wealth managers Client Portals, Mobility and Advisor Portals, giving allocators and managers of multi-asset-class, multi-strategy portfolios with powerful and robust tools for data aggregation, performance analytics and operational efficiencies, all delivered at scale on the same platform.
However, InvestCloud writes that it has over 660 clients with accounting needs served by legacy accounting systems that were designed in the last century. These accounting systems lack the ability to model sophisticated structures, reporting flexibility, and essential cloud, mobility and digital capabilities. This acquisition links InvestCloud’s digital platform with Babel’s trading and accounting capabilities to provide a unique solution for financial services companies. InvestCloud will also continue to support clients using other accounting solutions and will serve as an open supplier to the market.
John Wise, (pictured) Chairman and CEO of InvestCloud, says: “InvestCloud needed an extremely high-volume and low-cost trading and accounting (book-keeping) 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.”