Athena Systems Latest United Fintech Buy
Posted by Colin Lambert. Last updated: January 12, 2022
In what it terms a first step in a multi-stage acquisition, United Fintech has taken a 25% stake in capital markets portfolio and order management system provider Athena Systems. The firm says it plans to add another 26% in two years’ time and to buy the remaining 49% in three years.
In November, United Fintech announced the acquisition of London-based FairXchange and over the next few years it says its ambition is to complete multiple strategic acquisitions of ready-to-scale fintechs with proven capital markets products, positive cash flow and growth potential with the ultimate aim of building a fintech ‘one-stop-shop’ for global banks and financial institutions. With the acquisition of Athena Systems, United Fintech says it adds a new product offering within asset management to roll out across its platform.
“The financial services industry is waking up to a reality demanding not only that they digitise, but also help their clients digitise – to survive, that is,” says Christian Frahm, CEO of United Fintech. ”Just like banks, the managed money space is seeing huge disruption from free stock trading, robo advisors and new fintech startups, and this is where fintech – and in particular Athena – can make a huge difference. You must keep in mind that wealth creation is at a record-pace, the sophistication levels required by asset managers today are skyhigh. If you’re a portfolio manager, you’re not just required to handle stocks and bonds; clients are demanding handling and understanding of multiple assets.
”Thus the managed money space is growing and expanding and it is ever-more business critical that the service providers adapt with the right tools,” he adds. ”Banking and buy-side tech is starting to overlap and we are seeing very similar existential challenges and the choice is simple; adapt or die.”