International data provider IHS Markit (NYSE:INFO) announced today that it has acquired Israeli software company Cappitech. The Herzliya based company provides technology for regulatory reports to global financial institutions. No financial details about the deal were disclosed.
Cappitech was founded on the base of the development center of ITG, a global supplier of financial trading and technological services, which operated in Israel. Cappitech's founder and CEO Ronen Kertis, who formally managed ITG's Development Center in Israel, founded the company after ITG closed down its Israel operations. Most of Cappitech's 41 employees formerly worked for ITG and will now join IHS Markit.
Following the acquisition, Kertis will become head of IHS Markit's regulatory reporting division, which includes hundreds of employees as well as Cappitech's. The deal was closed on December 31 with the two companies knowing each other well as IHS Markit was a customer of Cappitech. Since 2019, IHS Markit has been using Cappitech's technology as a solution for reporting Securities Financing Transactions Regulation (SFTR) deals.
Kertis told "Globes," "The field of financing regulation technology that we are engaged in is very hot, although in Israel it is less known. IHS Markit has a crazy distribution network that will allow us to reach customers quickly and combine our technological ability with their presence."
To date Cappitech has raised just $4 million in a financing round in 2018, led by North83 and with the participation of private investors Rony Grushka and Kevin Gold, who were the founders of Markit, which subsequently merged with IHS. The company said that, "Cappitech's technology serves for the regulatory reports of more than 10% of the overall trade in securities in the EU."
IHS Markit, which provides critical information, analysis and solutions for major markets is traded in New York with a market cap of $37.5 billion.
Kertis said, "As a leading technology supplier for regulatory reporting, we are happy to be working with a company that shares our commitment to providing the best-in-breed regulatory reporting solutions and we are confident and certain that our success in working together in the past will lead to the successful implementation of a phase of future growth. I want to thank Cappitech's employees for their major contribution, the innovation that we know how to create and their major dedication that has helped us achieve this important milestone."
Published by Globes, Israel business news - en.globes.co.il - on January 11, 2021
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