IT services company Cognizant has acquired Dublin, Ireland-based Meritsoft, a financial software company, for an undisclosed amount.
Meritsoft serves investment banks and asset management firms. The company is known for its FINBOS platform for post-trade processing, an automated solution for managing taxes, fees, commissions, and cash flow functions between financial institutions.
The company’s solutions are touted to be used by five of the world’s eight leading investment banks.
Meritsoft co-founder and CEO Kerril Burke said: “By becoming part of Cognizant, Meritsoft will have access to Cognizant’s knowledge, resources and scale to accelerate growth as we continue to innovate on the FINBOS platform for post-trade solutions.
“It is a complementary match, coupling Cognizant’s industry platforms and solutions expertise, and Meritsoft’s advanced automation technologies. We will provide a powerful integrated offering to capital markets institutions who are seeking to control costs, meet regulatory requirements and maintain liquidity.”
Cognizant and Meritsoft have worked together in the past and have developed integrated solutions that use Meritsoft’s FINBOS platform and Cognizant’s managed services and digital operations capabilities.
Cognizant Accelerator president Sean Middleton said: “Increased compliance and regulatory obligations, focus on operational efficiency, and a range of new digital technologies are among the forces that have led many of the world’s leading financial institutions to automate processes using Meritsoft and its FINBOS platform.
“Banking and financial services is one of the largest industries that Cognizant serves. Meritsoft brings proven automation expertise in case management, regulatory compliance, payment and settlement of claims, and tax and brokerage cash flows to help our clients in transforming their businesses for the digital era.”
Investors in Meritsoft include Synova and an affiliate of 22C Capital, which have been working with the company’s management since 2015.
In January, the IT services company was selected by three Finnish financial institutions including Savings Banks Group, Oma Savings Bank and POP Bank Group to build and operate a shared core banking platform to enable their digital transformation plans.
With this contract, more than 10% of Finnish banking deposits and loans will be managed by the new platform, claimed Cognizant. Under the multi-year agreement, Cognizant will transform and operate the banks’ common core banking systems and support each individual bank’s enterprise digital strategy.