Finastra

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Finastra
Privately held company
Industry Software
Founded 2017
Headquarters London, England
Key people
  • Nadeem Syed - Chief Executive Officer
  • Simon Paris - Deputy Chief Executive Officer
  • Kellie Bickenbach - Chief Risk Officer
  • Rob Binns - Chief Financial Officer
  • David Caldwell - Chief Strategy Officer
  • Tom Kilroy - Chief Administrative Officer
  • Martin Haering - Chief Marketing Officer
Products Retail Banking, Transaction Banking, Treasury and Capital Markets, Investment Management
Revenue $2.1 billion
Owner Vista Equity Partners
Number of employees
10,000 (2017)
Website www.finastra.com

Finastra is a financial technology company that builds and deploys next generation technology on an open software architecture the company developed and a cloud system. The firm was formed in 2017 through the combination of D+H and Misys, after Vista Equity Partners acquired Misys in June 2012 and subsequently purchased D+H in 2017.

The firm offers financial services software capabilities globally, serving financial institutions, specialty lenders, community banks, credit unions, government and corporations. Finastra’s approach enables financial institutions to leverage software ecosystems, delivered on premises, hosted on the cloud.

Finastra is led by Chief Executive Officer, Nadeem Syed, who was previously CEO of Misys. The company has U.S. $2.1 billion in revenues and has offices in 42 countries. The company employs roughly 10,000 people and has over 9,000 customers across 130 countries.[1]

Misys History[edit]

1970 to 2000[edit]

The company was founded in 1979 by the brothers Roger and Glyn Morgan of Morgan Insurance (Worcester. a company started by their father) as MISYS[2]

The purchase of multiple established players in respective markets by Misys under the leadership of Kevin Lomax (Chairman and/or CEO 1985-2006) allowed Misys to evolve at various times into a software supplier to the US healthcare industry, to banks (worldwide) and to fund managers worldwide. Many of the companies acquired and consolidated by Misys were themselves products of previous mergers.

In 1987 Misys shares were first traded on the Unlisted Securities Market. It was admitted to the Main List of the London Stock Exchange in 1989, leveraged on the initial successes of the purchases, cross selling to an expanded client base and economies of scale arising from consolidation.

In 1994 Misys entered the banking software space by purchasing Kapiti Ltd. In 1995 Misys purchased ACT (which included BIS and Kindle), thus rapidly giving Misys control of 3 of the 4 biggest selling core banking packages at the time. At time of purchase Midas had the biggest installed base of any "off-the shelf" banking software package.

The biggest banking software company to be brought into the Misys fold was BIS. Business Intelligence Services or BIS Ltd in 1976 had acquired Kingsley-Smith and Associates and a software package named MIDAS developed by KSA. This banking software system was based on a concept of a core multi-currency accounting module. At the time most other International Banks worldwide worked and accounted on a 'single currency' methodology. It was marketed to and operated successfully by a number of client London Banks from 1979. From the mid to late-1980s competition to MIDAS came from vendors with systems called Kapiti, BankMaster (from Kindle) and IBIS. In 1991 ACT purchased Kindle followed by BIS in 1993 uniting two of the biggest selling products under one ownership albeit with different user bases. Midas was focused on its traditional strength of international branch banking in the world's financial centers. The simplicity of Bankmaster and its Branchpower front end sold very well to tier 3 and 4 banks in Africa and South America.

Kapiti Ltd was a privately held packaged banking software house focused on using IBM's mid range computers to server the international branch banking market. Kapiti was founded in 1975 by a Mr. John Kennedy, a New Zealand native and competed directly with the commercially more successful Midas system. Initially headquartered in London, the company moved to Windsor then Slough, Berkshire. In 1990 Kapiti re-branded the well established Kapiti International Banking System (KIBS) as EQUATION 1, sales were still focused on international branch banking with clusters of users in financial centers like London plus some small retail operations in the Gulf. The combination of the port to the new IBM AS/400 platform with its increased processing power, the user friendly EQ2 user interface rework, the performance boost from the EQ3 data base rewrite and the addition of a client server Cashier system had allowed an expansion into retail banking. Kapiti also pursued wholesale banking by merging with Aregon International (dealing room information feeds), purchasing Future Systems (trade capture) and purchasing rights to some reporting tools. None of the acquired companies prospered under Kapiti. However the technical expertise of the Aregon team was exploited to build in house a trade finance system called Trade Innovation (TI) which was commercially successful for 20 years or so.

In 1996 Misys bought Summit Systems, an American software company selling a front-office cross-asset management system targeting investment banks' trading rooms.

In 1997 it bought Medic Computer Systems, a healthcare software business.[3]

2000 to present[edit]

In June 2001 Misys bought DBS Management, a supplier of software to Independent Financial Advisors.[4]

In June 2001 Misys bought Sunquest Information Systems, a United States based supplier of medical systems software.[5]

In January 2004 Misys bought IQ Financial Systems from Deutsche Bank.[6]

In July 2005 Misys bought Almonde.[7]

In February 2006 Misys bought Intesio.[8]

In March 2006 Misys bought NEOMAlogic.[9]

In October 2006 the CEO Kevin Lomax, one of the company's founder, resigned and IBM veteran Mike Lawrie was apointed as his replacement[10]

In July 2007 Misys sold its diagnostic information software division to Vista Equity Partners.[11]

In October 2008 Misys' subsidiary, Misys Healthcare, was merged with Allscripts, a medical records business, to become Allscripts-Misys Healthcare Solutions, Inc[12]

In November 2010 Misys bought Sophis, a provider of portfolio and risk management software.[13]

In February 2012, Misys entered into merger talks with its Swiss rival Temenos.[14] The deal later collapsed when the two sides were unable to agree terms.

In March 2012 private equity firm Vista Equity Partners announced that it had reached an agreement to acquire Misys.[15]

In June 2012, upon the completion of acquisition by Vista Equity Partners, Misys was merged with Turaz, another acquisition of Vista. Turaz was formerly the treasury and risk management software division of Thomson Reuters.[16]

In February 2014, Misys bought Hungary-based IND Group, a supplier of online and mobile banking software.[17]

In August 2014, Misys bought Custom Credit Systems, a US-based supplier of credit workflow and loan origination software.[18]

In March 2017, D+H announced that it would be acquired by Vista Equity Partners and combined with Misys[19]

In June 2017, the merger with D+H was completed, and the company was rebranded as Finastra[20]

In January 2018, Finastra acquired Olfa Soft for its FX e-trading platform for financial institutions.[21][22]

In April 2018, Finastra launched an innovation lab in Hong Kong to enable collaboration between banks and other fintech companies.[23]

D+H History[edit]

In 1875, D+H was founded as Davis & Henderson, a Canadian manufacturer specializing in bookbinding and printing. By the latter part of the 1890s, Canadian financial institutions began to form a significant portion of D+H customer base.

In the 1960s, D+H started to produce printed cheques with Magnetic Ink Character Recognition (MICR) encoding and began printing individually personalized bank cheques. It continued to focus on the cheque business through the 1970s and 1980s.

Following a series of acquisitions starting in 2005, D+H shifted its business to providing financial technology services worldwide.[24]

In 2011, D+H went public on the Toronto Stock Exchange. It acquired Mortgagebot [24] and ASSET Inc. in 2011,[25] Avista Solutions in 2012,[26] Harland Financial Solutions [27] and Compushare in 2013,[26] and Fundtech in 2015.[28]

In 2016, D+H added blockchain technology capabilities to its global payments platform. The added capabilities enabled banks that use its Global PAYplus services platform to access distributed ledgers to connect networks, move money in real time and improve access to liquidity.[29]

On June 17, 2017, D+H announced that it would be acquired by Vista Equity Partners and combined with Misys, operating under the new company name Finastra for a total enterprise value of approximately $4.8 billion.[30]

Geography[edit]

Global head office is located in London, UK. North American head office is located in Toronto, Canada. Finastra has offices in 42 countries throughout the world.

References[edit]

  1. ^ Misys and D+H merge to launch fintech titan Finastra
  2. ^ Misys names Lawrie as new chief
  3. ^ "Misys pays heavily for tonic". 
  4. ^ Misys buys DBS to boost advice arm
  5. ^ Misys buys Sunquest for £286 million to tighten US hold
  6. ^ Misys acquires IQ Financial Systems for $40m
  7. ^ Misys acquires banking risk management firm Almonde
  8. ^ Misys buys Germany's Intesio for EUR10m
  9. ^ Misys buys trade finance outfit NEOMAlogic
  10. ^ Misys appoints Mike Lawrie group chief executive
  11. ^ Misys Sells Off Sunquest, CPR, Exiting the Hospital Systems Business Archived 2011-07-08 at the Wayback Machine.
  12. ^ Merger update[permanent dead link]
  13. ^ Misys to Buy Software Vendor Sophis for $593 Million Bloomberg, 12 November 2010
  14. ^ Misys In Talks Over Merger With Swiss Rival Temenos After Fidelity Failure Bloomberg, 3 February 2012
  15. ^ "Misys agrees to be bought by Vista for £1.3bn". BBC Online. 19 March 2012. Retrieved 2012-03-19. 
  16. ^ "Misys Acquires IND Group to Create Power House in Retail Banking Solutions". Retrieved 2018-03-04. 
  17. ^ "Misys Merges with Turaz to Create the Number One Provider of Financial Services Software". American Banker. 11 August 2014. Retrieved 26 April 2018. 
  18. ^ "Misys Acquires Loan Software Vendor Custom Credit Systems". American Banker. 11 August 2014. Retrieved 2018-04-26. 
  19. ^ "DH Corp to be acquired by Vista Equity Partners, merged with U.K.-based software provider Misys". Financial Post. 13 March 2017. Retrieved 26 April 2018. 
  20. ^ "Launch of Finastra" (Press release). D+H. 13 March 2017. Retrieved 3 March 2018. 
  21. ^ "Finastra acquires eFX trading platform provider Olfa Soft – IBS Intelligence". IBS Intelligence. 2018-01-30. Retrieved 2018-06-04. 
  22. ^ "Finastra Buys FX Platform Provider Olfa Soft - WatersTechnology.com". WatersTechnology.com. 2018-01-30. Retrieved 2018-06-04. 
  23. ^ "Finastra launches sandbox for fintech companies in Hong Kong | Global Trade Review (GTR)". Global Trade Review (GTR). 2018-04-13. Retrieved 2018-06-04. 
  24. ^ a b Davis + Henderson: A Canadian play on the U.S. recovery
  25. ^ Company Overview of ASSET Inc.
  26. ^ a b Checking In on Davis + Henderson
  27. ^ D+H Completes Acquisition of Harland Financial Solutions
  28. ^ DH Buys Financial Software Maker Fundtech for $1.25 Billion
  29. ^ D+H adds blockchain capabilities to payments platform
  30. ^ DH Corp to be acquired by Vista Equity Partners, merged with U.K.-based software provider Misys

External links[edit]