The acquisition builds on Fidelity’s existing relationship with Shoobx, which was established in 2021, to create an equity management solution that combined capabilities from both companies
Fidelity Investments Branch on Boylston Street in Boston. (Credit: Grk1011/Wikipedia)
Fidelity Investments has announced the acquisition of Shoobx, a provider of automated equity management operations and financing software, for an undisclosed sum.
Shoobx will join Fidelity’s Stock Plan Services business, which provides equity compensation plan recordkeeping and administration services to nearly 700 firms.
Stock Plan Services is a part of Fidelity’s Workplace Investing division.
The acquisition builds on Fidelity’s strategic relationship with Shoobx established in 2021, to create an equity management solution that combined capabilities from both companies.
Fidelity Workplace Investing head Kevin Barry said: “Given the success of our commercial relationship with Shoobx and the increasing demand from private companies to support them as they scale and grow, including helping their employees manage their financial well-being, acquiring Shoobx was a natural next step in our relationship.
“Together, we will accelerate the development of new and innovative solutions designed to help private companies confidently navigate the complex journey all the way through to an exit or IPO.”
The acquisition of Shoobx enables Fidelity to offer certain benefits to companies.
The benefits include full capitalisation table capabilities to manage equity ownership and market capitalisation, along with maintaining the calculation of their market value.
It will provide automated creation of ‘due diligence’ documents, including the reviewing and auditing of financial statements, market analysis and projections for future performance.
Also, the acquisition enables a large data room for the secure storing and sharing of confidential business information, and data modelling capabilities.
In addition, the acquisition will also provide stockholder and board management tools, stockholder and board management tools, along with a suite of employee benefits.
Shoobx CEO and co-founder Jason Furtado said: “Fidelity’s financial strength, market leadership, and unrelenting commitment to the client make this acquisition a perfect environment for Shoobx, allowing us to continue innovating to meet the complex needs of our existing clients, while thoughtfully accelerating our private market expansion.
“Joining Fidelity is just the beginning for what is going to be a long and rewarding journey for our clients and their employees, along with our own talented team.”