Amundi announces the acquisition of aixigo, a technology company that has developed a high value-added modular service offering for distributors of savings solutions.
Its platform, which is entirely based on API[1], enables new services to be deployed quickly and easily into existing IT infrastructures of banks and financial intermediaries.
Whilst digital technology has become a key lever to managing customer relations for wealth managers, the latter are also seeking to leverage technologies to enable their staff to advise, distribute and manage investment solutions more effectively. As a result, the market for technological services for wealth management players as well as private and retail banks, is growing significantly.
Amundi, which is already active in this buoyant market through its Amundi Technology business line and its solution Alto, will accelerate its development with the acquisition of aixigo, and thus reinforces its positioning as a leading provider of technology and services. The client and geographical coverage of Amundi in this market will be further enhanced by aixigo’s client base in Germany, Switzerland and the UK.
A combination of two complementary platforms
Founded in Germany 25 years ago by a group of academics, aixigo has expanded rapidly in recent years, with significant growth in revenues. aixigo and its 150 staff, currently serve over 20 clients, including leading international financial institutions representing over €1 trillion in assets under management. Some 60,000 advisors already use aixigo’s services daily to onboard clients, build and manage allocations, place orders and generate reports.
Amundi Technology has also significantly enhanced its offering, providing the investment and savings industry with technological solutions for portfolio management, employee savings & retirement, wealth management and asset servicing. Its highly diversified client base comprises over 60 clients, including banks, private banks, pension funds, insurers, fund custodians and asset managers in Europe and Asia.
From this point on, aixigo’s tools will be part of the solutions Amundi Technology provides to its clients across the entire savings value chain.
A transaction creating substantial value
This transaction, which is in line with Amundi’s strategic plan and financial discipline, will create significant value thanks to the business growth potential, as well as the revenue and cost synergies. The amount of the transaction is 149 million euros[2]. The return on investment will be nearly 10% after 3 years, and above 12% after 4 years.
Valérie Baudson, Chief Executive Officer of Amundi, commented: “Institutions that are distributing saving products are increasingly looking for solutions and external partners that enable them to improve their operational efficiency, and enhance the quality, the speed and the personalization of the advice, services and products they offer.
To address these needs, Amundi has built a range of services and a technological platform that will be further strengthened with aixigo. With the addition of new expertise, which have already been adopted and recognized by leading financial firms, we will continue to roll out new innovative services, and play an active part in the developments of the financial advisory and wealth management sector. This transaction will create significant value for our clients, partners and shareholders.”
Guillaume Lesage, Chief Operating Officer at Amundi, added: “We are delighted to welcome aixigo’s experienced teams, who will bring their entrepreneurial spirit, their cutting-edge technological skills, as well as their in-depth knowledge of the customer needs. Thanks to this new development, we will accelerate the deployment of Amundi Technology’s services to private banks and wealth managers, with a broader, more flexible, more scalable offering that will enable us to respond to an even wider range of business cases.”
Benjamin Lucas, Chief Executive Officer of Amundi Technology, said: “Amundi Technology is fully committed to delivering pioneering technology solutions and exceptional service to our clients globally. By bringing together the leading capabilities and solutions from Amundi Technology and aixigo, we will create a transformative offering for the wealth management and banking industry. We share a vision and ethos of delivering excellence and growth for all of our stakeholders, and we are extremely excited to welcome the aixigo teams as we continue along this journey together.”
Arnaud Picut, Chief Executive Officer of aixigo, declared: “Joining Amundi Technology presents aixigo with a unique opportunity to expand our service offerings and leverage Amundi’s expertise, allowing us to become the undisputed European leader before gradually extending our reach into Asia, a vision that perfectly aligns with our values and ambitions. It is also an opportunity to thank Urs Ehrismann, Founder of fronttrail Equity Partners that has accompanied aixigo as an equity investor over the past six years, enabling to build a successful European wealthtech platform provider.“
Christian Friedrich, Executive Board Member and co-founder of aixigo said: “A real wealthtech powerhouse will emerge from aixigo and Amundi Technology. I am very excited about the opportunities and possibilities this will create for the aixigo team. Our long-standing customers will benefit from the bundling of our joint skills and strengths and will be able to drive new services in the wealth management market. I am already looking forward to the innovations that this partnership will bring.”