Management and technology consultancy BearingPoint announced on Wednesday it is selling its independent Regulatory Technology (RegTech) business unit to private equity investor Nordic Capital. According to BearingPoint, the acquisition is a result of a strategic process to enable accelerated growth for the unit as a software company with specialized professional and managed services along the regulatory value chain.
BearingPoint also observed with Nordic Capital as the new owner, the RegTech business will boost its market position and push ahead with its international expansion against the backdrop of regulatory “harmonization.” Kiumars Hamidian, Managing Partner with BearingPoint, further explained that with the sale, the BearingPoint team will accomplish the “establishment of RegTech as a fully independent firm:
“I said that 2020 is all about the execution of our Strategy 2025, and despite difficult market conditions because of Corona we stick to our long-term plans. Our current business performance is the best proof point that our strategy is paying off. With the transaction we are delivering on the ambitions lined out in our strategy: we intensify the focus on our market-leading consulting portfolio.”
Fredrik Näslund, Partner and Head of Technology & Payments, Nordic Capital Advisors, further observed:
“RegTech’s unique portfolio of software and solutions is highly acclaimed in the industry and has already earned the trust of more than 6,000 reporting firms including banks, insurance companies, supervisory authorities and financial services providers. We are very impressed by the Company’s market position, its platform and its potential for further expansion.”
BearingPoint added it will continue to serve as a strategic consulting partner and will retain a minority stake in RegTech.