California-based Fintech firm InvestCloud has acquired Babel Systems, a provider to the robo-adviser Nutmeg, in a $20m (£16.44m) deal.
InvestCloud, known for its Programs Writing Programs technology, provides wealth managers with client portals, mobility and adviser portals. The firm also enables allocators and managers of multi-asset class, multi-strategy portfolios with "powerful and robust tools" for data aggregation, performance analytics and operational efficiencies
The firm described Babel as the "most modern trade and account platform in the market". InvestCloud has more than 660 clients with accounting needs that are currently served by last-century legacy accounting systems.
InvestCloud said this latest acquisition would link its digital platform with Babel's trading and account capabilities to "provide a unique solution" for financial services companies.
The company's chairman and CEO John Wise said: "InvestCloud needed an extremely high-volume and low-cost trading and accounting solution designed for the cloud. Babel is the answer."Babel is designed for the international market and is the most modern platform in the world designed for robo and wealth - however, it is also versatile and can be applied to all major financial markets."
He added: "The mistake of the majority of accounting systems is that there is an inherent problem with combining warehousing and operational databases into one product. Significantly, InvestCloud has the leading digital warehouse, and Babel Systems has the trading and accounting capability."
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