BNP to Buy Kantox

Following a minority investment in FX software provider Kantox in 2019, BNP Paribas has announced the signature of an agreement for the full acquisition of the firm in a bid to transform currency risk and hedging processes for its clients.

Kantox’s software solution targets the corporate FX workflow; offering a one-stop-shop, API-driven, plug-and-play solution. The bank says Kantox’s technology provides unrivalled level of automation and sophistication to corporates in setting up hedging strategies.

The acquisition is subject to regulatory approvals and is expected to complete in the coming months.

BNP observes that corporate clients face “unprecedented market turmoil this year”, and as such managing FX risk and devising hedges has never been more critical. Traditionally this has been a very manual and lengthy process, the bank says, but with Kantox’s hedging software, corporates can fully automate and streamline these FX workflows, capturing FX exposure data and automating their hedging, payment and collection processes.

Not only does this improve efficiency, the bank adds, it also allows corporate treasurers to focus on more strategic, value-added tasks. The acquisition will enable BNP Paribas’ clients to benefit from this software, increasing the bank’s relevance to corporates at a time when they need it the most.

“We are delighted to strengthen our partnership with Kantox, which brings to our clients a unique and innovative platform to automate their currency risk management,” says Olivier Osty, head of BNP Paribas CIB Global Markets. “Corporate treasurers are currently navigating turbulent markets and advanced technology can help mitigate some of the challenges, easing the burden of manual tasks and allowing them to focus on their strategic core business.”

Following the acquisition Kantox will be supported by the Global Markets business and the business centres of the Commercial, Personal and Banking Services (CPBS) division.

“We have been serving clients together since 2019 when our technology partnership started,” says Philippe Gelis, CEO and co-founder of Kantox. “During those three years, we spent a lot of time together in the field, getting the opportunity to understand that together we were stronger and able to bring more value to clients. It is the best of both worlds, the leading software company in the currency management automation category and the leading bank in Europe.”

Yann Gérardin, chief operating officer, head of BNP Paribas CIB, adds, “The acquisition of Kantox presents a further illustration of our ability to establish long-term partnerships with fintechs in an ever-increasing range of areas. Supporting our clients in their international development and providing them with the most advanced technological solutions have always been our priority and are as such key pillars of our GTS 2025 strategic plan.”