Platform engine provider FNZ has today sold off its acquired rival GBST to a private equity firm after the Competition and Markets Authority (CMA) blocked FNZ’s acquisition of GBST.

In June the CMA ordered FNZ to sell off GBST's platform arm after concluding that the £150m merger of FNZ and GBST risked reducing competition in the UK platform market.

While FNZ will sell off GBST’s platform division it will reacquire GBST’s capital markets division, including the GBST capital markets team and the Syn~ product suite.

The CMA allowed FNZ to retain a non-platform part of GBST as part of its ruling and has approved the latest deals by FNZ for undisclosed sums.

FNZ says the deals will give it the opportunity to expand its products and services and boost growth and global reach in listed securities trading and post-trade processing. 

Australian-owned Anchorage Capital Partners will aim to support GBST’s management team and growth ambitions. It will support investment in GBST’s platform solution Composer, it said.

As part of the CMA ruling earlier this year FNZ was given the right to repurchase a “narrower package of assets.” The CMA reassessed the deal following FNZ appealing to the Competition Appeal Tribunal against the CMA’s original decision to block its £150m acquisition of GBST announced in November 2019.

Scott Webster, managing director of FNZ Securities, said: “We’re excited that FNZ and GBST capital markets division are coming together to expand our presence in securities trading and post-trade processing. Capital markets continues to undergo major structural change that will require service providers to renew their systems and processes. This creates a huge opportunity to combine the complementary product strengths of FNZ and GBST’s capital market division. 

“FNZ reacquired the GBST capital markets division because of its talented employees, well-established products and its deep relationships with major financial institutions across the world. We are committed to ensuring these relationships, and the quality of the capital markets services, continue to be enhanced as part of the FNZ Group.” 

Phillip Cave, Anchorage Capital Partners founder and chairman, said: “We are thrilled to acquire GBST’s Wealth Management business and are committed to further investment supporting GBST management’s long-term growth plans and future pipeline of opportunities in the UK and Australia for its market leading wealth management administration platform and services.”

Rob DeDominicis, GBST chief executive, said: “This is a key milestone for GBST, and we are delighted to have been acquired by Anchorage Capital Partners, which has a strong reputation of investing in organisations like ours with outstanding market potential and an enviable list of Tier 1 financial services clients. We are pleased to have the support of Anchorage to drive continued growth, including expansion in key existing markets such as the UK and Australia.

“We look forward to accelerating the development of our award-winning wealth management solutions, continuing to rollout the Composer E-VOLVE technology transformation, developing further innovative cloud-based solutions for the wealth management market, and expanding our team and capabilities. We are confident that Anchorage Capital Partners will work closely with GBST’s experienced and knowledgeable management to add value to the business through capital investment and operational expertise.” 

The acquisition of GBST by Anchorage Capital Partners was completed today (22 December), and the reacquisition of the capital markets division by FNZ is expected to complete in Q1 2022. Terms of the agreement are not being disclosed. 

Anchorage is an Australian-headquartered global private equity firm with experience in the financial services sector. It has managed commitments from investors of around £534 million.