Cognizant (Nasdaq: CTSH) today announced it has acquired Meritsoft, a privately-held financial software company based in Dublin, Ireland. Meritsoft is best known for its FINBOS platform for post-trade processing, an intelligent automation solution for managing taxes, fees, commissions, and cash flow functions between financial institutions.
Meritsoft's products are currently used by five of the world's eight leading investment banks. Financial details of the transaction were not disclosed.
Cognizant and Meritsoft have a track record of working together, meeting demand for integrated solutions that leverage the agility of Meritsoft's FINBOS platform and Cognizant's managed services and digital operations capabilities.
Meritsoft was recently recognized as one of the Deloitte Best Managed Companies in Ireland 2018, as well as being named 2018 Management Team of the Year by the British Private Equity and Venture Capital Association.
"Increased compliance and regulatory obligations, focus on operational efficiency, and a range of new digital technologies are among the forces that have led many of the world's leading financial institutions to automate processes using Meritsoft and its FINBOS platform," said Sean Middleton, President, Cognizant Accelerator. "Banking and financial services is one of the largest industries that Cognizant serves. Meritsoft brings proven automation expertise in case management, regulatory compliance, payment and settlement of claims, and tax and brokerage cash flows to help our clients in transforming their businesses for the digital era."
"By becoming part of Cognizant, Meritsoft will have access to Cognizant's knowledge, resources and scale to accelerate growth as we continue to innovate on the FINBOS platform for post-trade solutions," said Kerril Burke, co-founder and CEO, Meritsoft. "It is a complementary match, coupling Cognizant's industry platforms and solutions expertise, and Meritsoft's advanced automation technologies. We will provide a powerful integrated offering to capital markets institutions who are seeking to control costs, meet regulatory requirements and maintain liquidity."
"We look forward to Meritsoft joining us, and expanding the fintech offerings within our growing software product portfolio," Middleton added. "This acquisition underscores our strategy for acquiring and developing unique and powerful software products that address critical vertical industry requirements, especially when combined with our digital operations capabilities."
Meritsoft private equity investors were Synova and an affiliate of 22C Capital. Both have been working with Meritsoft management since 2015.
"It has been a great experience supporting Meritsoft management in scaling their game-changing product, and their acquisition by Cognizant paves the way for delivering the integrated software and services solution the market demands," said Philip Shapiro, Managing Partner of Synova Capital, and member of the Meritsoft board.
"Cognizant has been an important strategic partner to Meritsoft for some time, and we wish the combined team continued success together looking ahead," said Randall Winn, Managing Partner of 22C Capital, and member of the Meritsoft board.