The new mentality behind investment in technology
Are large companies slowing down with developing their own software and instead focused on buying already successful FinTechs?
Over the last year, we have seen some large software companies and Private investment firms buying up their competitors and smaller firms in order to gain a foothold in new markets.
One of the busiest companies has been the ION Group who have acquired Dealogic, the content platform, for a reported $840million and two Commodities & Energy Trading & Risk Management (C/ETRM) platforms, Openlink and Aspect Enterprise Solutions which, along with a former acquisition TriplePointTechnology, will make them possibly the largest E/CTRM platform provider, globally.
More recently, Temenos, one of the largest Wealth Management solutions have had a bid accepted to buy Fidessa, the Sell & Buy-side trading suite, which will make it a major financial services software provider.
There is also reported interest from CME to buy NEX Group, the former software arm of ICAP, which will be a massive coup should I go ahead, but I’d imagine that will initiate a bidding ware before long.
Are big corporations focusing on acquisitions rather than investing in development of their own platforms? All I know is that sometimes, where these software companies are purchasing innovation stalls, it tends to spark a new wave of participants within the market.