About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

NeoXam Bases Growth Strategy on Data Management, Investment Management and Accounting

Subscribe to our newsletter

NeoXam has consolidated its acquisitions of the past couple of years, including enterprise data management (EDM) specialist SmartCo, and set out a growth strategy based on the three disciplines of data management, investment management and investment accounting, and extended geographic reach across North America and Asia. The Paris-based company is also developing cloud based on-demand services based on its software solutions and expects to begin rolling these out later this year.

The company’s roots lie in GP3 and Decalog, respectively back-office and front-office asset management solution providers that were founded in the late 1980s by executives who would later be part of NeoXam. GP3 and Decalog were acquired by SunGard in the late 1990s and acquired again in February 2014 as part of the creation of NeoXam by its owners BlackFin Capital Partners and private investors led by NeoXam CEO Serge Depla.

A further flurry of acquisitions followed, bolstering NeoXam’s asset management portfolio and opening the door to capital markets and investment banking markets. In October 2014, the company acquired Density Technologies, a provider of front-to-back office solutions for the buy side that extended its coverage from vanilla listed instruments to wider asset classes including derivatives and private equities.

In April 2015, NeoXam acquired Nexfi, a provider of front-office decision support software for the buy side, and in June 2015, it acquired SmartCo, the enterprise data management software company at the heart of NeoXam’s data centric strategy and the vehicle that would support the company’s business in buy-side markets, but also carry it into sell-side markets.

Didier Roubinet, chief strategy officer at NeoXam, says: “We are a 25-year old startup as the result of our experience with GP3 and Decalog. The acquisitions of Density and Nexfi meant we had many added value solutions, but we then needed underlying technology to manage data acquisition and distribution across all the solutions, so we acquired SmartCo.”

NeoXam renamed SmartCo’s EDM products as NX Data Hub and NX Matching, the first a centralised data hub and the second an ETL layer that supports data reconciliation, data quality and distribution across the company’s solutions as well as best-of-breed third-party solutions. Using what NeoXam calls a Best of Hybrid approach, data can then be consolidated into an IBOR or used for reporting purposes. This approach, and experience acquired with SmartCo, is also being used to bring together facets of asset management and capital markets to deliver a flexible platform that can support both buy- and sell-side needs.

NeoXam goes to market with a flexible EDM platform that can support its own and third-party applications or be retrofitted to existing applications. The company continues to offer individual applications, providing clients with solutions that can be used on a stand-alone basis or integrated with the EDM platform.

Having consolidated the capabilities of its acquisitions, NeoXam is looking ahead and is in the early stages of a four-year plan that will migrate existing and additional value added solutions to a cloud-based, software-as-a-service (SaaS) model. The company is running a demo of on-demand market data with a group of bank clients and expects to follow this with SaaS pricing or reconciliation options later this year.

In the data management market, the company competes with the usual suspects, and as a start-up already has a sizeable client base having acquired about 15 customers with SmartCo, including RBS, Dexia, and Renaissance Capital. It has also won 22 new projects over the past two years, 19 of them with new clients.

Not surprisingly, the company’s strength is in Continental Europe, but it does have plans to open a London office this year and extend its presence in North America by adding a base in San Francisco to offices in Boston and New York. A good start in China with the GP3 back-office product will act as a springboard for the rest of Asia, where the company plans to open an office in Singapore later this year to promote both its data management and component solutions. From a standing start of 250 employees in 2014, the company is expected to grow to around 400 employees this year.

Reviewing NeoXam’s short history, yet extensive experience, Roubinet concludes: “We want to be a data centric company offering mission critical solutions to the asset management and capital markets sectors. And we want to offer the best total cost of ownership.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Solving the operations talent crisis

Date: 26 January 2023 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes With financial services in the grip of the Great Resignation, operations – a function which has always found recruitment and retention of talent difficult – is facing challenging times. Business growth is a must, but with scaling comes the...

BLOG

Challenges and Opportunities of Achieving a 360-Degree View of Risk

Achieving a 360-degree view of risk is a challenge, but can be achieved by taking a holistic approach to risk that embeds necessary data within a firm’s corporate structure and makes it accessible to all parts of the enterprise. Integrating data in this way enables all parts of the business to work in unison towards...

EVENT

RegTech Summit New York

Now in its 6th year, the RegTech Summit in New York will bring together the regtech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Managing Valuations Data for Optimal Risk Management

The US corporate actions market has long been characterised as paper-based and manually intensive, but it seems that much progress is being made of late to tackle the lack of automation due to the introduction of four little letters: XBRL. According to a survey by the American Institute of Certified Public Accountants (AICPA) and standards...