Wealth management platform FNZ has completed the sale of fintech provider GBST to private equity fund Anchorage Capital Partners.
Financial details were not disclosed.
It comes a year after FNZ was ordered by the UK’s Competition and Markets Authority (CMA) to sell the business.
Loss of competition
The acquisition took place in July 2019 and saw FNZ buy 100% of the shares in GBST.
But the CMA intervened in March 2020, expressing concerns that the deal would adversely affect the market.
The merger was blocked in early August; with FNZ clapping back later that month, arguing that the CMA’s claims regarding a lack of competition come from its “narrow” view of the retail market, which is “at odds” with the evidence.
In November 2020, the watchdog said: “The loss of competition brought about by the deal could lead to investment platforms, and therefore UK consumers who rely on these platforms for administer their pensions and other investments, facing higher costs and lower quality services.”
The wealth platform appealed; but was unsuccessful – resulting in the deal announced on Wednesday.
The CMA’s solution was for FNZ to sell GBST in its entirety but buy back a limited set of assets.
While Anchorage Capital Partner’s’ focus is on GBST’s wealth management division, FNZ will reacquire GBST’s capital markets division, which includes the Syn product suite.
According to a statement: “This will provide FNZ with the opportunity to expand its product and service offering to both existing and future clients and accelerate the growth and reach of its global capabilities in listed securities trading and post-trade processing.”
The acquisition of GBST’s capital markets division is expected to complete in the first quarter of 2022.
The deals have been approved by the CMA.