Nordic Capital carves-out RegTech from BearingPoint

Stockholm-based Nordic Capital is set to acquire a majority stake in BearingPoint’s RegTech business, a regulatory reporting platform used by more than 6,000 firms including banks, insurance companies and supervisory authorities.

Founded over 25 years ago, RegTech is headquartered in Frankfurt, and has 17 offices across 10 countries with a total workforce of approximately 630 employees. The company is expected to generate revenues of close to €100m in 2020.

The terms of the transaction were not disclosed.

Nordic capital said it will maintain the current management team and invest in the company’s continued product development and international expansion plans. BearingPoint will retain a minority stake in the company.

“Our vision is to become one of the strongest international players in the regtech space,” said Jürgen Lux, the company’s chief executive officer.

The investment is Nordic Capital’s second deal in the regtech sector this year. In September, it acquired Danish software business Siteimprove for €500m.

At the moment, the firm is investing its tenth buyout fund, the firm’s largest capital pool, closed at a €6.1bn hard cap and raised remotely amid the pandemic. The vehicle focuses on mid-market companies primarily based in Europe.  Its main targeted sectors are healthcare, technology and payments, financial services, industrial and business services.

Launched in 1989, Nordic Capital has invested more than €15.5bn in more than 110 investments, according to a statement.

Source: Private Equity News