SimCorp acquires AIM Software for €60m for data management boost
SimCorp has signed an agreement to acquire all shares in AIM Software and its subsidiaries, for a total enterprise value of€60 million.
Closing of the acquisition is expected to be around the beginning of August, subject to regulatory conditions.
AIM Software is a provider of data management solutions with a focus on the buy-side and a long-standing partner to SimCorp. AIM Software has offices in Vienna, London and New York.
In 2018, AIM Software generated a revenue of €15.5 million.
According to AIM Software, data management is an area of growing importance to buy side firms and increasingly central to any investment manager’s operations.
AIM Software will provide SimCorp with new capabilities in an area linked to its existing front-to-back offering. SimCorp expects to achieve cross-selling and cost synergies by combining the two firm’s office locations.
Klaus Holse, CEO of SimCorp, comments: “AIM’s data management solution, Gain, is a valuable addition to our portfolio, supplementing our offering in an area of strategic importance to our clients. The combination of AIM’s data management capabilities and SimCorp’s integrated front-to-back, multi-asset investment solution will allow us to provide asset managers and asset owners alike with an even more comprehensive end-to-end offering.”
SimCorp expects the acquisition to increase its revenue by approximately 2% and have a negative impact on its earnings before interest and taxes (EBIT) margin of approximately 1% within the year. This is due to lower initial profitability and certain non-recurring costs associated with the acquisition.
Following the acquisition, AIM Software will be fully integrated into SimCorp. Its product, Gain, will be renamed SimCorp Gain and become a core component of SimCorp’s future data management offering.
The acquisition will be financed by own cash reserves and credit facilities.