Back in December 2018, Dutch VC Main Capital invested in Munich-based fintech startup Cleversoft to capitalise on the growing RegTech Challenge for financial services. In a recent development, cleversoft has acquired an Amsterdam-based specialist of risk and regulatory reporting solutions SecondFloor, which also happens to be its competitor.

Notably, this is the first acquisition of the cleversoft founded in 2004 by Dominik del Bondio, Florian M. Clever and René Blaschke. It is an attempt to buy and build a strategy in addition to focusing on strong organic growth. Along with Main Capital, the Munich-based company aims to build a European RegTech Provider focused on SaaS. While Main Capital is the primary source to finance the acquisition, it is a minority shareholder in SecondFloor while cleversoft is the majority shareholder.

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Charly Zwemstra, Founder and Managing Partner of Main Capital Partners said, “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.”

Market leader in automated regulator reporting

SecondFloor provides risk and regulatory reporting solutions for Solvency II, IFRS 17, FTK, IORP II and more. The company has over 100 customers spread across 15 European countries. And, it is a market leader in efficient and automated regulatory reporting. This is possible with eFrame, its collaboration and data management platform.

To build leading SaaS-focused RegTech solution

As a result of this acquisition, both cleversoft and SecondFloor aim to build a leading European SaaS-focused RegTech player with over 100 employees. Also, it is aimed to achieving a strong growth prospectus. This is possible as cleversoft group’s footprint in banking and asset management will be merged with SecondFloor’s insurance client base. As a result, the companies will come up with a comprehensive solution for MiFID II, PRIIPs, Solvency II, IFRS 17 and other international regulatory frameworks.

Both SecondFloor and cleversoft group focus on executing a buy-and-build strategy to become a leader in the European market for financial regulation technology.

Further, Main Capital Partners is a fast growing investment management firm. It is a strategic investor with a focus on the enterprise software industry and management buyouts in Europe. The objective of the company is to create operational and strategic value and develop large and healthy software groups that are driven by solid businesses fundamentals.

Main Capital is a specialised company for management buyouts. The experienced team of operational and financial professionals at the company have over €450 million in assets under management for investment in profitable, mature and growing product software companies with the potential to disrupt markets but triggering change.

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