SimCorp, Denmark-based IT solution provider company recently announced acquisition of AIM Software, a data management specialist for €60 million. SimCorp confirmed the buying of all shares in AIM Holdings. The acquisition is expected to close in second half of 2019 and is subject to certain conditions, report sources.
For the record, AIM Software is a leading financial data management solution provider with a specialized focus on buy-side. AIM Software has been in a time-honored partnership with SimCorp. The company has about 75 employees, 40 people with a third-party service provider and has offices in London, New York & Vienna. In 2018, AIM Software generated a revenue of €15.5 million.
Klaus Holse, CEO, SimCorp, was reportedly quoted saying that AIM’S data management solution, GAIN, is a valuable addition to SimCorp’s portfolio. The combination of SimCorp’s integrated front-to-back, multi-asset investment solution & AIM’s data management capabilities will enable the company to provide asset managers & asset owners with a comprehensive end-to-end offering.
According to experts, SimCorp’s competitiveness & strategic position will be strengthened with the acquisition. Data management is central to any investment manager’s operational foundation and is an area of increasing significance to buy-side firms. In system selection processes, data management is the key consideration. AIM Software’s market-leading solution will strengthen Sim Corp’s position by adding new capabilities to its existing offerings.
According to sources, following the acquisition, AIM Software’s services will be fully integrated into SimCorp’s data management division. AIM’S flagship platform GAIN will be renamed SimCorp Gain & will become an essential component of data management services provided by SimCorp in the future.
SimCorp expects to accomplish cross-selling synergies from complimentary products, shared target client base & cost synergies, for instance; combining both location of both companies. In 2019, SimCorp expects its revenue to increase by 2% with the acquisition & have a 1% negative impact on its EBIT margin, due to lower initial profitability. The acquisition will be financed by credit facilities & cash reserves.