Today, SimCorp is announcing that it will merge with Axioma, a leading global provider of factor risk models, portfolio construction tools, and multi-asset class enterprise risk solutions.
“We are excited about our joint future as a single company. Axioma’s established market leadership and dedicated focus on portfolio optimization and risk management analytics, combined with SimCorp’s strong platform and broader capabilities, create a powerful client-first offering across the entire investment management value chain,” said Christian Kromann, CEO of SimCorp.
Prior to the merger with SimCorp, Axioma was part of Qontigo, a subsidiary of the Deutsche Börse Group since 2019 and a strategic partner of SimCorp since 2021. This strategic partnership has created a strong joint value proposition for clients, including recent additions such as Hassana Investment Company, AP3 and AP4.
Following the success of the partnership and after completion of the acquisition of SimCorp by Deutsche Börse in September 2023, it was evident that the approach that would deliver the best value to clients, was the merging of both entities into one single company.
“To succeed in today’s rapidly evolving investment landscape, a flexible and holistic approach to portfolio construction and risk management is essential. The combined strength of SimCorp and Axioma makes our agile, front-to-back platform truly market-leading,” said Kromann.
SimCorp’s serves as the tech backbone for over 300 of the world’s largest financial institutions, while Axioma’s solutions are used by more than 380 investment managers globally, with a core client base in North America.
“By merging with Axioma, SimCorp further strengthens our presence in key markets, such as North America, which is our primary growth market. This paves the way for accelerating growth. Over the past two years, our partnership has proven highly successful, and by strategically utilizing each other’s market positions, we can now access a broader market with an even stronger offering,” said Kromann.
One of the key pillars of SimCorp’s growth strategy is the consistent development of its open platform ecosystem strategy. This strategic initiative empowers the buy side to effortlessly integrate the SimCorp platform with carefully curated solution providers and gain access to the latest innovation in the marketplace.
Since 2021, users of SimCorp’s investment management platform have had the opportunity to seamlessly integrate Axioma’s portfolio optimization and risk analytics offering, through standardized APIs.
“With a successful commercial partnership to date, there can be no doubt that SimCorp and Axioma’s offerings complement each other. Through a unified product and strategy roadmap, we can more effectively harness each other’s strengths and resources to further-enhance our industry-leading investment and risk management platform and support the global buy side in their search for higher risk-adjusted returns,” said Kromann.
SimCorp will continue its open platform strategy and offer clients the fullest optionality, including access to other risk management providers. Similarly, the Axioma brand will continue to be available to other investment management platform providers.
Two award-winning investment technology providers join forces
SimCorp and Axioma1 both achieved several top positions across multiple categories in the RiskTech Buyside50 2023 report by Chartis Research, the leading provider of research and analysis on the global market for risk technology.
- Investment Lifecycle – Overall
- Fund accounting
- Fund Accounting Outsourcing Provider
- Portfolio management – Enterprise
- Front Office Risk Management
- Investment/Market Risk – Analytics
SimCorp offers an industry-leading integrated investment management platform. The platform and ecosystem enable us to provide 40 percent of the world’s top 100 financial companies with the efficiency and flexibility they need to succeed.
By integrating Axioma’s best-in-class asset class coverage, premier risk management, and portfolio construction natively within SimCorp’s comprehensive front-office, middle-office, and back-office capabilities, customers can leverage an unparalleled investment management platform.
The combined company employs over 2,800 people globally, spanning more than 30 offices worldwide, and reports over +€700m in gross revenue. The company is headquartered in Copenhagen, Denmark. Today, SimCorp operates as a subsidiary of Deutsche Börse Group.