European banking software provider Vermeg has completed its acquisition of Lombard Risk expanding its geographical footprint and products.
The move is part of Vermeg’s strategy to create a “leading force” in financial services through a combination of organic and external growth.
Lombard Risk’s business in the UK, Asia-Pacific and North America will provide Vermeg with presence in those regions and the opportunity to further expand its current operations.
The deal will also see collateral management, regulatory reporting and compliance products used by banks and buy-side firms added to Vergmeg’s product line, alongside 150 customers including insurers, depositories and central banks.
Vermeg is expected to reach a turnover of €100 million through the acquisition, according to chairman and founder Badreddine Ouali
“We will be able to better meet the global needs and expectations of our clients wherever they may be,” he said. “Lombard Risk has an excellent reputation in its respective markets and our combined strength will give us an even higher level of stability and credibility in the eyes of our customers.”
Pascal Lerroy, CEO of Vermeg, added that with tier one organisations facing regulatory and market structure changes, the combination with Lombard Risk will position the firm strongly as clients deal with ongoing digitalisation.
“Our strategy is guided by our analysis of the future evolution of the market and the changing needs of our customers,” he said. “We take into account several key trends including the convergence of banking and insurance, coupled with increased levels of complexity in regulation and efficiency.”
The acquisition is the latest combination of banking technology and software providers seeking differentiation in a saturated market through global expansion, as well as additional services and products.
In November, trading software providers Itiviti and ULLINK confirmed plans to merge and form a combined entity worth more than $200 million in revenues, and a presence in major markets across Europe, the US and Asia.
Earlier this month, Fidessa agreed to terms of an all-cash acquisition by Temenos to combat the current fragmented and legacy technology dominated vendor landscape.
The Lombard Risk and Vermeg management teams have joined together to start building the future combined business.