New York, US-based investment management company BlackRock has signed an agreement to acquire Cachematrix, a fintech company that simplifies cash management process for banks.

Financial terms of the deal were not disclosed. Presently, Cachematrix supports client assets worth about $200bn through relationships with many of the largest banks and asset managers in the world.

Cachematrix platform allows financial institutions to provide their corporate clients with a portal to allocate cash for a variety of money market funds and direct cash instruments.

The platform also enables corporate clients to analyse and perform compliance checks and generate detailed reports about their respective cash investments.

The acquisition is part of BlackRock’s strategy to invest in scalable technology solutions that leverage its global platform.

With this acquisition, BlackRock is expected to see an addition of a new dimension to its global liquidity management capabilities. The company plans to develop a consolidated interface, where Cachematrix’s functionality, Aladdin’s analytics and BlackRock’s investment expertise will be integrated for more productive investment strategies.

BlackRock's global cash management business head Tom Callahan said: “Regulatory changes in both the US and Europe have fundamentally changed the needs of cash investors. In addition to world class products, cash investors now require new tools to streamline liquidity management and better manage risk.

“Building on BlackRock’s strength and scale in the cash management space and leadership position in technology and risk management, this transaction reinforces our commitment to adapt our business for clients’ evolving needs, and to be the leading provider of comprehensive cash management solutions.”

Cachematrix Chairman and Founder George Hagerman said: “Joining forces with BlackRock will enhance our ability to deliver technology solutions that simplify cash management for banks and their corporate clients.

“Together we will broaden our reach with best-in-class financial technology and world-class investment products to help clients address their liquidity needs.”

Image: BlackRock to acquire Cachematrix. Photo: Courtesy of adamr/