The Deutsche Börse subsidiaries will become a single provider with a fuller set of front-to-back office Ops offerings.
A month after it was officially acquired by Deutsche Börse Group, SimCorp, an investment management platform provider, will be merged with Axioma, a maker of factor risk models, portfolio construction tools, and multi-asset class enterprise risk solutions.
SimCorp and Axioma are subsidiaries of Deutsche Börse Group, which should ease the merging process.
The SimCorp-Axioma integration to come will lead to “a full front-to-back-offering combining existing SimCorp front-office, middle-office, and back-office capabilities Axioma’s risk management, and portfolio construction and optimization tools,” according to the official announcement.
Before the merger announcement with SimCorp, Axioma was part of Qontigo and has had a partnership with SimCorp since 2021.
That partnership “created a strong joint value proposition for clients, including recent additions such as Hassana Investment Company, AP3 and AP4,” according to the official announcement. “Following the success of the partnership and after completion of the acquisition of SimCorp by Deutsche Börse in September 2023, it was evident that the approach that would deliver the best value to clients was the merging of both entities into one single company.”
The partnerships allowed “users of SimCorp’s investment management platform” to “integrate Axioma’s portfolio optimization and risk analytics offering, through standardized APIs [application programming interfaces],” officials say.
“Through a unified product and strategy roadmap, we can more effectively harness each other’s strengths and resources to further-enhance our industry-leading investment and risk management platform and support the global buy side in their search for higher risk-adjusted returns,” says Christian Kromann, CEO of SimCorp, in a prepared statement.
SimCorp’s open platform strategy will continue and will allow “open access to other risk management providers. Similarly, the Axioma brand will continue to be available to other investment management platform providers,” according to the official announcement.
The merger will also boost SimCorp’s foray into North American markets.
SimCorp’s offerings are used by “300 of the world’s largest financial institutions, while Axioma’s solutions are used by more than 380 investment managers globally, with a core client base in North America,” officials say.
The merger “further strengthens” Kromann says. “This paves the way for accelerating growth. Over the past two years, our partnership has proven highly successful, and by strategically utilizing each other’s market positions, we can now access a broader market with an even stronger offering.”
Deutsche Börse’s takeover of SimCorp began in April 2023 when Deutsche Börse made an “all-cash voluntary recommended public takeover offer to acquire all of the issued and outstanding shares (except treasury shares) in SimCorp” for a total of $4.3 billion, officials reported. The acquisition had many chapters with shareholders and regulators before it was finally completed.
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