InvestCloud snaps up Babel for $20 million
09 January 2017 | 4570 views | 0
California's InvestCloud has acquired UK trade processing and accounting software house Babel Systems for $20 million in a deal which reunites serial entrepreneurs and brothers John and Steve Wise.
Babel, founded in 2008 by long-time fintech veteran Steve Wise, offers a modular API-based platform for trade processing and accounting and counts robo-advisory firm Nutmeg among its client base.
In acquiring Babel, InvestCloud says it will be able to cross-market the UK firm's tech platform to clients that continue to run their books and associated back office processing on outmoded accounting systems that lack modern cloud, mobility and digital capabilities. The firm claims to have some 660 customers in the market for new accounting software.
John Wise, chairman and CEO of InvestCloud, comments: “InvestCloud needed an extremely high-volume and low-cost trading and accounting solution designed for the cloud. 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.”
Both software developers, the Wise Brothers were joint founders of the UK supplier of private client stockbroking systems Synergo, which was acquired by Terence Chapman Associates. TCA Synergo was subsequently sold to Wilco International for £15.5 million in April 2001.
It is expected that the close relationship between the two brothers will help speed the integration of the respective businesses, creating a TransAtlantic platform capable of meeting the needs of a new generation of automated wealth management and advisory firms.