January 20, 2021

IHS Markit acquires compliance firm Cappitech after year-long partnership

IHS Markit has acquired compliance technology provider, Cappitech, following a year in partnership.

IHS will “unify” its solutions with Cappitech

Israel-based Cappitech provides robust regulatory reporting, best execution analysis and business intelligence solutions.

The firm says 200 banks, brokers, asset managers, hedge funds, and corporations use its cloud-based platform.

IHS Markit selected Cappitech’s platform as “a key component” of its Securities Financing Transactions Regulation (SFTR) solution.

The firm says it is “capitalising on the established relationship and existing integration”. It adds the latest move will deliver “unified solutions” to the market.

Pierre Khemdoudi, global equities managing director, believes regulatory reporting demand will “grow rapidly” around the globe.

He says customers are looking for “a reliable, frictionless and cost-effective way to comply with requirements across jurisdictions.”

“Cappitech complements IHS Markit’s existing systems,” says Khemdoudi.

Neither firm has disclosed the finances of the deal.

Musical mergers

IHS Markit is involved in another takeover saga, as data firm, S&P Global, seeks to acquire it in a deal worth around $44 billion.

A successful deal could see the two firms take on major data providers Bloomberg and Refinitiv.

Douglas Peterson, president and CEO of S&P Global, will serve as CEO of the combined company.

Lance Uggla, CEO at IHS Markit, will stay on as a special advisor to the company for one year following closing.

According to memos seen by the Guardian, regulatory approval for the deal could take up to nine months.

“This transaction is a win for both IHS Markit and S&P Global as we leverage our respective strengths in information, data science, research and benchmarks,” Uggla said at the time.

Related: IHS Markit acquires Singapore-based Catena Technologies