Next step in the extension of a European RegTech Service Portfolio for Financial Service Institutions – Main Capital effectively combines two portfolio companies anticipating the consolidation in the software industry.
Amsterdam/Munich, May 6th 2019: cleversoft group, the Munich based RegTech provider for Financial Services, acquired SecondFloor, an Amsterdam based specialist of risk and regulatory reporting solutions for Solvency II, IFRS 17, FTK, IORP II and others.
With over 100 customers in 15 countries across Europe SecondFloor is a market leader in efficient and automated regulatory reporting. With its innovative collaboration and data management platform eFrame®, SecondFloor has a proven track-record in turn-key service solutions for Solvency II, IFRS 17, FTK, IORP II as well as disclosure reporting.
The combination of cleversoft group and SecondFloor will create a leading European SaaS-focused RegTech player with more than 100 employees and a strong growth prospectus. While cleversoft group has an impressive footprint in the banking and asset management segment, SecondFloor contributes a significant insurance centered client base. The products of both companies are complementary enabling the combined group to offer a comprehensive solution for PRIIPs, MiFID II, Solvency II, IFRS 17 and other international regulatory frameworks. Conducting its first acquisition, cleversoft group together with SecondFloor aim to execute a buy-and-build strategy to become a European-wide leader in the market for financial regulation technology. Main Capital is a majority shareholder in cleversoft and was also a minority shareholder in SecondFloor. In addition, Main capital was the primary source of financing for this acquisition.
Florian Clever, CEO & Founder of cleversoft group, explains the reasoning behind the acquisition: “We are excited to join forces with the extraordinary team from SecondFloor. We have been impressed by the deep regulatory understanding, the customer base and its loyalty as well as the customer-driven approach to developing new services. Moving forward we see in particular benefits by leveraging the synergies of the SecondFloor product suite and cleversoft solutions such as FactsheetsLIVE to seamlessly extend the value propositions for both our existing and new clients.”
Bart Oortwijn, CEO & Founder of SecondFloor, adds: “Since our first meeting we have pleasantly worked together with cleversoft management and developed a shared vision. The merger with cleversoft offered us an excellent opportunity to make a next step in the development of our company. As part of cleversoft group we will be even better equipped to scale the SaaS-/Cloud-services and anticipate on expected growth in the market. We can offer customers a wider range of solutions. And together with cleversoft we expect to be better positioned in the German market.”
The SecondFloor management and team will keep the existing positions to support the client base and further develop the eFrame® software product. Both companies see synergies and market opportunities in the merger. The combination will be very well positioned with a strong team, products and brands for regulatory technology in the financial industry.
SecondFloor is the first acquisition in the execution of the buy & build strategy on top of strong organic growth. cleversoft has joined forces with strategic Software Investor Main Capital Partners, for building a Euopean RegTech Provider focused on Software-as-a-Service. Charly Zwemstra, Founder and Managing Partner of Main Capital Partners explains: “With this acquisition we demonstrate that the cleversoft & Main teams are executing the strategy with a perfect fit fast and effective. We are progressing very well with further strategic steps in the RegTech SaaS space to additionally boost our inorganic growth. Our focus here are foreign European markets with complementary service offerings.”
cleversoft is a market-leading compliance reports specialist for the financial industry. The group offers cloud based proprietary solutions for regulations like PRIIPs and MiFID II. Through intuitive interfaces and lean integrations with back-end systems, cleversoft’s products enables financial players to efficiently harness highly-complex regulations.
SecondFloor is a market leading specialized RegTech supplier of risk and regulatory reporting solutions in Europe. The company’s mission is to accelerate reporting with innovative and reliable solutions, that facilitate the reporting and governance processes of our customers.
About Main Capital Partners
Main Capital is a strategic investor with an exclusive focus on the software sector in the Benelux, DACH and Nordics regions. Main Capital has a long-term investment horizon centered around successful partnerships with management teams, with the goal to, jointly, build larger software groups. Within this sector, Main is the most specialized company in management buyouts and later-stage growth capital. Main Capital has approximately € 450 million in assets under management for investments in mature and growing software companies. The funds are managed by an experienced team of investment and operational professionals, located in offices in The Hague, Düsseldorf and Stockholm.
The current portfolio of Main Capital includes rapidly growing software- and SaaS software companies like HYPE Innovation, cleversoft, Enovation, SDB Ayton, Jobrouter, GOconnectIT, Verklizan, Inergy, MUIS Software, Artegic, OBI4wan, b+m Informatik, Ymor, Onguard, ChainPoint, RVC, and TPSC. Moreover, Main Capital also holds a majority stake in managed hosting provider Denit. Successfully expanded former Main Capital companies are, among others, Roxit (governmental software) and Axxerion (SaaS-based facility management software).