United Fintech has announced the acquisition of 25% stake in London-based FairXchange. The company noted that this is the first step towards full ownership. The transaction was made for an undisclosed amount.
This is the third acquisition for United Fintech in its first year since it was founded in order to “save big banks from Big Tech.” Founder and CEO Christian Frahm has said that there are future acquisition plans on the horizon to accelerate the company’s technological development.
FairXchange’s analytical tools help trading firms to facilitate data-driven dialogue with their counterparties bringing transparency to execution performance through independent data.
Christian Frahm commented:
FairXchange’s business critical, data-driven product, Horizon, is already being used by an extensive client base including a number of global financial institutions, and with the onboarding to United Fintech’s platform, we look forward to enabling FairXchange to continue its growth journey and scale with us. As United Fintech will onboard the Company’s clients and FairXchange will get an opportunity to grow within our clientele, this is a mutual win for both parties – and a milestone for United Fintech, completing its third transaction in just one year.
Frahm noted that the acquisition will not impact FairXchange clients and employees’ everyday business.
The trading analytics firm fits with United Fintech’s strategy of acquiring Capital Markets software products ready for scaling and global roll-out on its platform. United Fintech aims to help big banks and financial institutions accelerate the implementation of digital technology.
Guy Hopkins said:
FairXchange has seen rapid, exciting growth in recent years; however we are still a small team and as we scale up we recognise the importance of choosing the right partner to help us accelerate that growth. From the first conversation, we knew United Fintech was the perfect fit; a compelling vision, an innovative business model and a very impressive management team with deep expertise in financial markets. We’re looking forward to joining the United Fintech platform, increasing our own reach while also contributing to the wider success of the group.
United Fintech launched just a year ago in November 2020, and already has over 100 employees in Copenhagen, London, New York, Berlin and Romania and has completed three acquisitions.
Christian Frahm concluded:
The City and Wall Street will see bigger disruption in the next 10 years than they have seen in the past 100 years. The whole industry desperately needs to access the most innovative minds and products globally, but the onboarding at all bigger institutions is killing any chance of new products actually getting into the banks in the first place. We are born as a partner for banks to help them transition quickly from slow motion into this lightspeed world. The next 10 years is all about speed for the banks. And they no longer have the luxury to do it by themselves. Banks need partners. United FIntech unites founders of the most innovative fintech businesses globally and brings them to the big banks under one central umbrella – an innovation platform where banks feel comfortable taking risk on new products; so that they can faster and more seamlessly onboard new technology. And the acquisition of FairXchange is a great example of doing exactly that.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.