Management and technology consultancy BearingPoint will sell its independent Regulatory Technology (RegTech) business unit, a leading provider of software solutions for regulatory reporting to Nordic Capital, a leading private equity investor with a long history of developing technology companies and enabling and driving global growth. The transaction 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 announces the sale of its Regulatory Technology unit to Nordic Capital
With Nordic Capital as the new owner, the RegTech business will boost its leading market position and push ahead with its international expansion against the backdrop of regulatory harmonization. BearingPoint will continue to serve as a strategic consulting partner and will retain a minority stake in RegTech.
The current RegTech management team will remain and will work in close partnership with Nordic Capital. RegTech’s customers will not be impacted by the transaction. The closing of the transaction with Nordic Capital is subject to customary regulatory approvals. The financial terms of the transaction were not disclosed. The entire transaction has been managed by the M&A practice in BearingPoint’s Capital unit.
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Kiumars Hamidian, Managing Partner with BearingPoint, said: “With the sale of our RegTech unit we accomplish the establishment of RegTech as a fully independent firm – a strategic initiative we had started two years ago. 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.
“The RegTech business unit will benefit from the increasing regulatory requirements around the world. As an independent firm, supported by a strong owner as Nordic Capital, it will have the necessary agility and flexibility to make the best possible use of these opportunities”, says Patrick Palmgren, Global Head of the BearingPoint Capital unit under which RegTech was managed so far. “I am personally looking forward to going on that journey together with Nordic Capital and RegTech”, Patrick Palmgren concludes.
