Cognizant Acquires Fintech Innovator- Meritsoft
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.
Nasdaq-listed Cognizant 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. The products from the Meritsoft’s stable are currently being 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 named 2018 Management Team of the Year by the British Private Equity and Venture Capital Association.
Sean Middleton, President, Cognizant Accelerator, said that 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. BFSI 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, said Middleton.
Kerril Burke, co-founder and CEO, Meritsoft, said that 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. It is a complementary match, coupling Cognizant’s industry platforms and solutions expertise, and Meritsoft’s advanced automation technologies. They will provide a powerful, integrated offering to capital markets institutions who are seeking to control costs, meet regulatory requirements and maintain liquidity, said Burke.
Middleton said that they look forward to Meritsoft joining them, and expanding the fintech offerings within the former’s growing software product portfolio. The latest acquisition also underlines the company’s strategy for acquiring and developing unique and powerful software products, which, in turn, address critical vertical industry requirements, especially when combined with their digital operations capabilities.
Meritsoft private equity investors were Synova and an affiliate of 22C Capital. Interestingly, both the companies have been working with Meritsoft some way or the other since 2015.
Philip Shapiro, Managing Partner of Synova Capital, and member of the Meritsoft board, said that it has been a great experience supporting Meritsoft management in scaling their game-changing product, and the acquisition by Cognizant actually paves the way for delivering the integrated software and services solution, the market demands.
Cognizant has been an important strategic partner to Meritsoft for some time, and they wish the combined team continued success together looking ahead, said Randall Winn, Managing Partner of 22C Capital, and member of the Meritsoft board.