- Contribution of fundsaccess AG and FundHero S.A. with its sister company FinTecc LLC already negotiated
- Strategically oriented investor enables further acquisitions
- Executive Board and Supervisory Board welcome the agreement
Görlitz, 27.10.2023 | niiio finance group AG (ISIN: DE000A2G8332), a software-as-a-service platform for asset and wealth management, today announced via an ad-hoc announcement that, according to the current state of knowledge, a majority of its shareholders (which hold a good 68% of the shares) have concluded an investor and shareholder agreement with the investment company Neptune TopCo GmbH. This holding company has so far been a 100% indirect subsidiary of funds managed or advised by Pollen Street Capital Limited. Headquartered in London, Pollen Street Capital is a strategically focused asset manager with a focus on financial and business services. This investment reflects Pollen Street’s continued focus on the Wealth and Asset Management sector, on supporting workflow automation software vendors which serve the financial services industry, and on Germany as a key European financial services market. Other recent deals reflecting this focus include Kingswood Wealth, PAIR Finance, Aryza, and Proactis.
The subject of the investor agreement is the successive investment for the purpose of financing company acquisitions and the further economic development of the company. The takeover and subsequent contribution of the three companies fundsaccess AG, FundHero S.A. and its sister company FinTecc LLC by Neptune TopCo GmbH to niiio finance group by way of capital increases in kind has already been negotiated. In the course of the fundsaccess transaction, the fundsaccess subsidiary MiFID-Recorder GmbH will also be taken over as a bolt-on acquisition, which enables the legally compliant recording of telephone and video consultations. The Company’s Management Board and Supervisory Board welcome the investor agreement and support its implementation. The closing of the transaction is still subject to various conditions precedent. A previous shareholder of the Company, Volksbank BRAWO eG, will sell all of its shares held in the Company to a wholly owned sub-subsidiary of Neptune TopCo GmbH as of closing.
Through the acquisition of additional companies, the parties to the investment agreement aim to create a group of companies that can serve the market of asset and wealth management companies in all its facets with its software solutions. In the future, the previous main shareholders of niiio finance group will hold a stake in this group via an intermediate holding company, as well as the current shareholders of fundsaccess AG and an investment company of the funds of Pollen Street Capital (details under stock corporation law: see ad hoc announcement of 27th October, 5:33 am).
fundsaccess AG, a subsidiary of Munich-based Finconomy AG, is a well-known provider of a software-as-a-service solution for legally compliant investment advice in mass business, including for insurance companies. In this way, the former competitor of niiio’s subsidiary DSER will expand and strengthen niiio finance group’s range of wealth management services in the future. fundsaccess AG, headquartered in Munich, employs 27 people and generated sales of EUR 7.2 million in 2022. Also part of the transaction is MiFiD-Recorder GmbH with five employees and an annual turnover of EUR 0.8 million.
FundHero S.A. is already a cooperation partner of niiio subsidiary PATRONAS and complements the Group’s offering in the Asset Management segment, especially with its managed services for fund companies in the areas of risk management and sustainability (SFDR). The company generated sales of EUR 1.4 million in 2022 and, together with its sister company FinTecc LLC, employs 10 people. FinTecc LLC will also be acquired as part of this transaction and will focus primarily on data development and data management in the future and will be expanded as a near-shore development location. The number of employees of niiio Group will increase to over 110 in the course of the entire transaction and the pro-forma turnover in 2022 would have amounted to approximately EUR 17 million.
„This transaction is a milestone for our Group. The new companies complement and optimise our existing range of services, and the investment from Pollen Street Capital offers us the potential for further acquisitions along the value chain in our target markets,“ comments Johann Horch, CEO of niiio finance group. „Our customers benefit from comprehensive solutions from a single source. And we are a decisive step closer to our goal of building Europe’s leading cloud-based SaaS platform for asset and wealth management.“
David Dawson, Partner at Pollen Street, said: “We are pleased to announce this transaction, which will create a new leader in the wealth and asset management software space in Europe with an enviable client base, high-quality product solutions, and a track record of growth both organically and via acquisitions. We see a great opportunity in this growing space to continue to build the group’s footprint and service propositions, and look forward to supporting Johann and the team in delivering on the group’s potential.”
niiio finance group AG
About Pollen Street Capital
Pollen Street is a fast growing, purpose led and high performing private capital asset manager. Established in 2013, the firm has built deep capability across the financial and business services sector aligned with mega-trends shaping the future of the industry. Pollen Street manages over £3.3bn AUM across private equity and credit strategies on behalf of investors including leading public and corporate pension funds, insurance companies, sovereign wealth funds, endowments and foundations, asset managers, banks, and family offices from around the world. Pollen Street has a team of over 80 professionals with offices in London and New York City.
About niiio finance group AG
niiio finance group AG provides cloud-based SaaS solutions for asset and wealth managers. The company offers a comprehensive, modular set of solutions, enabling the digitization of a broad range of activities on a rapid and compliant basis for its clients. niiio finance group’s goal is to create the leading pan-European platform in its space, building on both its track record of M&A as well as its strong momentum organically. The group employs over 80 people, and serves more than 150 clients across 7 countries.
About fundsaccess AG
fundsaccess AG is a leading SaaS technology provider for independent financial advisors. fundsaccess’ platform connects investors, financial advisors, wealth and asset managers and custodian banks, delivering state-of-the-art financial technology to help its clients’ to increase efficiency and strengthen their distribution power. The company was established in 1999 and is headquartered in Munich, Germany.
FundHero is a Luxembourg-based provider of risk management solutions for institutional asset managers. The company’s core product helps banks and financial services providers determine and calculate risk indicators, and thus fulfil their regulatory reporting obligations. FundHero was established in 2021.
This release contains statements about the future development of the niiio Group. These forward-looking statements are based on the Management Board’s current expectations, assumptions and forecasts, as well as the information currently available to the Management Board. They have been compiled to the best of the Management Board’s knowledge. As far as such forward-looking statements are concerned, no guarantee can be given and no liability can be assumed that the future developments and results mentioned will occur as presented. Rather, future developments and results depend on various factors. They entail risks and uncertainties that lie beyond the Company’s control and are based on assumptions that may not prove to be accurate. Notwithstanding any legal requirements to revise forecasts, we do not assume any obligation to update the forward-looking statements made in this release.