UK tech firm Lombard Risk has been acquired by Vermeg, a European banking and insurance software provider based in Amsterdam.
Vermeg paid just over £52m for Lombard Risk and will use the acquisition to expand its geographical footprint.
The Dutch firm, which boasts annual revenues of €54m, already has offices in France, Belgium, Luxembourg, Spain and Tunisia.
Lombard Risk, which will be delisted from the London Stock Exchange as a result of the acquisition, has a presence in the UK, North America and Asia-Pacific.
Speaking about the deal, Badreddine Ouali, chairman and founder of Vermeg, said: “Through our acquisition of Lombard Risk, we will reach a turnover of €100m. 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,” he added.
Pascal Leroy, CEO of Vermeg, went on to note: “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.”
Lombard Risk will continue to be based in London, with a development centre in Birmingham.
Alastair Brown, CEO of Lombard Risk, said he believed the combination of Lombard Risk and Vermeg would create a “powerful, global financial services software champion”.
“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,” he concluded.