Markit expands fintech service with acquisition

 
Edith Hancock
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Markit Group founder and chief executive Lance Uggla
Financial data supplier Markit is expanding its reach in the global financial industry, as it announced yesterday it has agreed to purchase foreign exchange trading service DealHub for an undisclosed sum.

Markit said the acquisition will allow the group to expand its service, offering a one-stop shop for banks, brokers and asset managers.

Jeff Maron, managing director at Markit, said: “The combination of Markit and DealHub enhances our position in FX, one of the most important global markets, and can offer customers an end-to-end solution. Combining our teams will further position us to continue to bring innovation to the FX market.”

Markit is a global financial information and services company with over 3,600 employees, and handles data about derivatives, currencies, and loans. It provides services from software to trading links for big banks and other financial institutions.

The deal between the two companies is expected to be finalised by the third quarter of 2015 and will be funded by a combination of cash and Markit’s revolving credit facility.

The news comes as Markit has recently taken an interest in broadening its applicability to the financial industry. Earlier this month, the company struck a $127m (£81m) deal for CoreOne Technologies, a provider of regulatory reporting and data management.

DealHub customers include global banks, regional banks, interdealer brokers, FX electronic trading venues and asset managers.

Brad Levy, head of Markit’s processing division, said: “DealHub is a great company and highly complementary to Markit’s growing FX processing business.”

Following completion of the acquisition, DealHub will become part of Markit’s processing division. DealHub, owned by marketing software provider Option Computers, is a comparatively small company with just 55 employees in London, New York and Singapore. The company’s users include JP Morgan, UBS, HSBC and Deutsche Bank.

Markit said the acquisition will not have a major impact on its annual results.

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