London-based RegTech firm Sybenetix to be acquired by Nasdaq

Sybenetix, a London-based RegTech company which leverages AI to spot rogue traders, is to be acquired by Nasdaq in an undisclosed cash deal.

The move by the US giant is the first since Adena Friedman took over the stock exchange as chief executive some six months ago.

Speaking about the news, Friedman said: “Nasdaq is investing in the technologies, talent and capabilities that solve the complex challenges our clients face.

“We believe behavioral science, cognitive computing and machine intelligence are essential to a successful, holistic surveillance offering and critical to efficient and effective organizational compliance with an increasingly intricate global regulatory environment.

“As such, we are thrilled to welcome the talented technology team and clients from Sybenetix. Their bespoke compliance, surveillance and performance management technology can meet the needs of the world’s largest asset managers and will be complementary to Nasdaq’s Risk and Surveillance suite.

“This acquisition accelerates our offering to the buy-side and advances our ambitions to expand market integrity controls into all segments of the capital markets.”

Set up in 2009 by Taras Chaban, a former fund manager, and Wendy Jephson, a behavioural scientist, Sybenetix has in the past received backing from Summer Capital, Collinio Capital and Yarrow Capital.

Chaban and Jephson said in a joint statement: “We are extremely proud to be joining Nasdaq. This acquisition is recognition of the talent, innovation and hard work of the Sybenetix team. Being part of Nasdaq will provide enormous growth opportunities for Sybenetix’s surveillance technologies and will also accelerate new product development for the buy-side industry.

“Our clients will benefit from the added confidence of working with a world-leading company that understands the business and requirements of Sybenetix’s buy-side customers. We believe this is an incredible opportunity and are looking forward to working with the Nasdaq team.”

The deal is the latest in a string of transactions which has seen a few UK firms bought out by US technology giants.

Microsoft, for example, is believed to have paid $250m in cash for London-based Swiftkey, and a few months later Magic Pony was bought by Twitter.