Fenergo acquisition approved by EU Commission

14 Jul 2021

Image: Fenergo

Astorg and Bridgepoint’s acquisition of the Dublin-based fintech firm was initially announced in May.

The European Commission has approved an acquisition of Dublin fintech firm Fenergo by investment funds Astorg and Bridgepoint.

The purchase was initially announced in May, with precise financial details not disclosed, but a previous deal reported by the Irish Times valued the company at more than $1bn.

In a press release, the commission’s director general of competition said: “The commission concluded that the proposed acquisition would raise no competition concerns, given that the companies’ combined and individual market shares remain minimal both for horizontal and vertical relationships in the markets where the companies are active.”

The commission must be notified prior to any mergers and acquisitions that have an “EU dimension”. Where participating companies have a combined market share of less than 15pc (or 25pc in vertically related markets), the commission’s competition department can approve the deal after a routine check. Larger deals require a more thorough investigation.

Founded in 2009, Fenergo operates on a SaaS basis and provides financial services to companies with client life cycle management and know-your-customer tools. Its software suite covers onboarding, customer relations, regulatory compliance and data management. Its clients include Danske Bank, Credit Suisse, State Street, Santander, Aviva and Bank of China.

In November, Fenergo was named Irish tech company of the year. Speaking at the time, Technology Ireland director Una Fitzpatrick said that the company is “recognised for its in-depth financial services and regulatory expertise, community-based approach to product development and out-of-the-box rules engine”.

Astorg is a Paris-based private equity firm with approximately €11bn of assets under management, while London-based Bridgeport holds around €27bn.

Fenergo has seen rapid expansion in recent years, having raised $80m of new investment in February 2020, and announcing this past April plans to hire more than 100 new staff across a range of departments. In the year ending March 2021, the company’s revenue grew by 17pc to $107m.

Jack Kennedy is a freelance journalist based in Dublin