IHS Markit (Nasdaq: INFO) has expanded its analytics and financial markets solutions offerings with the recent acquisition of Cappitech, a regulatory reporting and intelligence solutions provider.
Announced on Monday, the merged companies are yet to reveal the combined offering and the opportunities, which is scheduled for the end of this month.
“This acquisition reflects our commitment to delivering a single global regulatory reporting solution that meets the fast-evolving needs of our clients,” Cappitech wrote on a press release shared with Finance Magnates.
Prior to the closing of the acquisition deal, IHS Markit partnered with Cappitech in 2019 for SFTR services.
Regulatory Reporting Is a Priority for Companies
The acquisition deal was closed at a time when the demand for regulatory reporting services was rising. A survey published by Cappitech last November showed that 65 percent of the companies had to change their reporting due to inefficiencies and errors.
“Regulatory reporting demands will continue to grow rapidly around the globe and customers are looking for a reliable, frictionless and cost-effective way to comply with requirements across jurisdictions,” IHS Markit’s Managing Director for global equities, Pierre Khemdoudi, said.
IHS is a major data financial data provider and was founded in 2016 with the merger of IHS and Markit. The company is also reportedly in talks with New York-based S&P Global for a $44 billion merger deal.
Based in Israel, Cappitech offers reporting and analytics services in several markets, including EMIR, MiFID II, RTS 27/28, ASIC, SFTR and MAS. Additionally, it offers best execution analysis and business intelligence solutions to financial services companies.
Moreover, it raised $4 million in a funding round closed in 2018, as seen on Crunchbase.
“We are excited to join a company that shares our passion for providing best-of-breed regulatory reporting solutions and looking forward to expanding our existing commitment to the industry,” Ronen Kertis, Cappitech’s CEO and Founder, added. “Based on our extensive engagement with IHS Markit over the past two years, we are confident that combining our mutual successes and sector expertise will enable us to accelerate our product enhancement and services for the benefit of our global clients.”
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