Fidelity Investments Acquires Shoobx, Furthering Commitment to Equity Plan Capabilities for Private Firms

Fidelity Investments announced it is furthering its commitment to the private market with the acquisition of Shoobx, a provider of automated equity management operations and financing software “for private companies at all growth stages, up to and including an initial public offering (IPO). Financial terms of the acquisition are not being disclosed.”

Shoobx will join Fidelity’s Stock Plan Services business, “a provider of equity compensation plan recordkeeping and administration services to nearly 700 companies with 2.5 million plan participants, totaling over $250 billion in plan value.”

Stock Plan Services is “part of Fidelity’s Workplace Investing division, one of the country’s leading workplace benefits providers.”

In 2021, Fidelity established “a strategic relationship with Shoobx to provide a complete equity management solution to the private market.” That joint solution “combined some of the top products and services from Fidelity and Shoobx, including Fidelity’s expertise in equity compensation and benefits administration, along with Shoobx’s equity management capabilities, board management tools, and data room solutions for the secure storage and sharing of important business information.”

Kevin Barry, head of Fidelity Workplace Investing, said:

“Given the success of our commercial relationship with Shoobx and the increasing demand from private companies to support them as they scale and grow, including helping their employees manage their financial well-being, acquiring Shoobx was a natural next step in our relationship. Together, we will accelerate the development of new and innovative solutions designed to help private companies confidently navigate the complex journey all the way through to an exit or IPO.”

Jason Furtado, CEO and co-founder of Shoobx, remarked:

“Fidelity’s financial strength, market leadership, and unrelenting commitment to the client make this acquisition a perfect environment for Shoobx — allowing us to continue innovating to meet the complex needs of our existing clients, while thoughtfully accelerating our private market expansion. Joining Fidelity is just the beginning for what is going to be a long and rewarding journey for our clients and their employees, along with our own talented team.”

Together, Fidelity and Shoobx will “continue offering private companies valuable solutions across a variety of areas,” including:

  • Innovative technology. Comprehensive solution that evolves to address the needs of companies at each stage of their growth, including workflow automation, reporting and data modeling, and management solutions to assist with exit scenarios and “next round” planning.
  • Robust industry experience. Clients can be assured that they are operating in the best interest of their company and stakeholders while leveraging industry-leading insights and best practices from decades of both public and private equity administration.

With its acquisition of Shoobx, Fidelity will “offer companies myriad features and benefits,” such as:

  • Full capitalization table capabilities to manage equity ownership and market capitalization, as well as maintain the calculation of their market value.
  • Automated creation of “due diligence” documents, which include the reviewing and auditing of financial statements, market analysis and projections for future performance.
  • A robust data room for the secure storing and sharing of confidential business information.
  • Data modeling capabilities to provide companies with possible “next round” investment planning and exit scenarios.
  • Stockholder and board management tools to capture and provide centralized access to key documentation, approvals and communication among board members, senior management, investors, and employees.

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