United Fintech announced today that it has acquired an additional 26% stake in TTMzero, achieving majority ownership of 51% of the Berlin-based RegTech.
Danish-British United Fintech entered the Market Data & RegTech space in February 2021 with the acquisition of a 25% stake in TTMzero, whose primary clients today include names such as Citi, Morgan Stanley and Commerzbank.
Simon Ullrich, co-founder of TTMzero, explained why the two founders sold their shares to United Fintech and describes how fintech is experiencing an increasing need for large-scale software solutions due to the increasing demand for compliance and security measures, which are pressing. institutional.
He said:
Simon Ullrich
Our main motivation was that we wanted access to global markets, and with United Fintech’s network we believe we can grow into new jurisdictions.
As founders, we preserve the core culture of TTMzero which has always been a focus on product innovation and UX while United Fintech offers a scalable platform that allows us to serve our clients as a global company.
Joins United Fintech
In a separate transaction, the two German entrepreneurs who founded TTMzero, Simon Ullrich and Soenke Blunck, have used part of the share sale proceeds to invest in United Fintech at group level.
United Fintech CEO Christian Frahm commented:
Christian Frahm
In recent years, the trend has been for financial institutions to want to reduce the number of third-party suppliers. Historically, this would mean more expansive contracts with legacy vendors, but this is where we differentiate ourselves “with a rare combination of great technology from the best niche vendors under one umbrella, and we now see this emerging as a winning combination.
Frahm explained that at group level, the fintech firm’s revenue has increased 5 times organically and through mergers and acquisitions. He said he is confident the company will grow further in its niche over the next few years.
United Fintech was launched two years ago, and in that time the company has grown from just the founder Christian Frahm to employing more than 160 people in 8 countries. The fintech firm has acquired 5 capital markets software companies so far, converted them into United Fintech’s digital platform partners and has added Barclays, Deutsche Bank, ABN Amro, BNP Paribas and Standard Chartered Bank to its list of more than 200 clients globally.
Frahm aims to achieve more strategic acquisitions and partnerships with fintech companies in the capital markets over the next decade. His goal is to develop a comprehensive roadmap that enables banks, asset managers and other financial institutions to replace their outdated legacy infrastructure with innovative fintech solutions.
He added:
The financial sector realizes that getting out of old infrastructure and embracing newer and more open architecture is essential for survival in a world where customer behavior and needs are changing drastically. The best products come from niche product companies – not from large legacy vendors. That’s why our value proposition is attracting massive interest from financial services firms around the world, all of whom are in a digital race against time, and why they seem to be rallying around larger core vendors over smaller standalone software firms like never before, giving United Fintech and our platform of products a serious competitive advantage.
