Vermeg, a European banking and insurance software solutions leader, has acquired Lombard Risk, the leading global provider of integrated regulatory reporting and collateral management solutions.
This move is a key milestone in Vermeg’s ambitious strategy to create a leading force in financial services solutions, via a powerful combination of organic and external growth. Lombard Risk will rapidly expand Vermeg Group’s geographical footprint and product lines into fast growing areas including collateral management and regulatory risk solutions.
Vermeg has offices in France, Belgium, Luxembourg, Spain, the Netherlands and Tunisia, and annual revenues of €54 million. This acquisition increases Vermeg’s key business lines and adds collateral management operations, regulatory reporting and compliance products for banks and buy-side firms to its 150-strong customer base of insurers, institutional investors, asset managers, depositories and central banks.
Lombard Risk’s presence in the United Kingdom, North America and Asia-Pacific provides Vermeg with a promising platform in these areas and the ability to further expand its existing operations.
Commenting on the acquisition, Badreddine Ouali, Chairman and Founder of Vermeg said: “Through our acquisition of Lombard Risk, we will reach a turnover of 100 million Euros. Moving forward we will further develop our offering so that clients can benefit from a team, expertise and proposition that are more established than the newer FinTechs, and much smarter and more responsive than the incumbent larger software houses. We will be able to better meet the global needs and expectations of our clients wherever they may be. Lombard Risk has an excellent reputation in its respective markets and our combined strength will give us an even higher level of stability and credibility in the eyes of our customers."
Pascal Leroy, CEO of Vermeg, said: “Our strategy is guided by our analysis of the future evolution of the market and the changing needs of our customers. We take into account several key trends including the convergence of banking and insurance, coupled with increased levels of complexity in regulation and efficiency. With tier one organisations across the world facing these challenges, the combination of Lombard Risk and Vermeg means that we will be in a greater position to decisively help our clients in the ongoing digitalisation and IT revolution. This larger Group will also enable us to attract even more world class talent and provide our employees with amazing opportunities.”
Alastair Brown, CEO of Lombard Risk: “We believe that the combination of Lombard Risk and Vermeg will create a powerful, global financial services software champion, and we strongly believe that the new group will be well positioned to generate and seize exciting opportunities in the future. Our dedicated focus on the collateral management and regulatory reporting industries will continue, whilst opening access across the Group to the markets in the UK, North America and Asia-Pacific.
"Vermeg’s Financial Markets, Securities Services, Pensions, Insurance and Wealth and Asset Management business are highly complementary and will give the combined Group a significantly strengthened portfolio, which will enable us to make an even bigger difference for existing and future clients.”
The Lombard Risk and Vermeg management teams have joined together to start building the future business. Lombard Risk will be delisted from the London Stock Exchange and will be known as Lombard Risk, a Vermeg company.