Alpha FMC acquires cloud SaaS business Obsidian Solutions

18 November 2019 Consultancy.uk

Specialist financial services consultancy Alpha FMC has announced that it has completed the acquisition of Obsidian Solutions. The financial services cloud-based SaaS business has offices in the UK and Serbia, with a headcount of 14 staff.

Alpha Financial Markets Consulting (Alpha FMC) provides independent advice and expert insight to asset and wealth managers, as well as boasts a suite of proprietary benchmarking data and other technology solutions. Founded in 2003, the fast-growing consultancy went public two years ago, and since then it has been working to expand its operations as quickly as possible.

Earlier in 2019, this saw Alpha FMC launch a new Zurich office to complement an existing hub in Geneva. At the same time, the firm grew its footprint in Europe and North America with the purchase of Axxsys, a specialist technology and management consultancy with offices in the UK, Denmark, the US and Canada.

Alpha FMC acquires cloud SaaS business Obsidian Solutions

Now, Alpha FMC has continued its current growth-spurt, with its purchase of Obsidian Solutions, a financial services focused, cloud-based SaaS business. The deal takes place for a £5.7 million cash in base consideration, payable in two installments over six months following acquisition, plus a contingent earn-out, designed to maximise long-term recurring earnings, which may become payable over the four years following completion.

Euan Fraser, Alpha's Global CEO, said of the move, "This acquisition enhances and extends the Alpha Data Solutions’ 360 SalesVista product offering, for which we continue to experience strong client demand. It also strengthens the Group’s work with hedge fund clients, brings Alpha a highly skilled product development team and creates a strategic growth opportunity with a recurring revenue model. Following our recent successful Axxsys acquisition, this transaction demonstrates Alpha’s focus on highly selective bolt-on acquisitions, as well as continued organic expansion globally."

Obsidian was founded in 2015 with the aim of leveraging the latest in cloud computing and modular software design principles for clients. The firm has offices in the UK and in Serbia, and has a 14-person team primarily consisting of computer scientists with specialised industry knowledge and product delivery expertise. Obsidian has approximately 30 clients across its product suite – providing specialised software products to the investment management industry, with product suites including business intelligence for sales and investment data, client portals, fund and client reporting, and an automated subscription/KYC management module.

Lazar Radenovic, Obsidian's CEO, commented, "We are very excited at this significant milestone. We have successfully grown the Obsidian business in recent years developing awarding winning financial products and, having collaborated with Alpha’s product development this year, I believe that being part of the Alpha Group is the best place for us to achieve our growth ambitions leveraging Alpha’s leading market position in the wealth and asset management sector."


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