Stockholm-based Nordic Capital, a private equity whose funds focus on investments primarily in Northern Europe, has acquired the RegTech division from management and technology consulting firm BearingPoint. BearingPoint will continue to serve as a strategic consulting partner and retain a minority stake in the company.

RegTech, a European provider of software solutions across the regulatory value chain, is headquartered in Frankfurt and has 17 offices across 10 countries. Founded over 25 years ago, the company is reportedly expected to generate revenues of close to EUR 100 million in 2020.

The terms of the transaction were not disclosed.

Nordic Capital intends to support RegTech’s next phase of innovation and sustainable growth by investing in the company’s continued product development, enhancing its organisational capacity and expanding its international footprint.

“RegTech’s unique portfolio of software and solutions is highly acclaimed in the industry and has already earned the trust of more than 6,000 reporting firms including banks, insurance companies, supervisory authorities and financial services providers. Our broad experience in supporting the growth and development of software and technology companies makes Nordic Capital an ideal partner to play a formative role in the next phase for RegTech together with the company’s management team,”

said Fredrik Näslund, Partner and Head of Technology & Payments, Nordic Capital Advisors.

Technology and payments is one of Nordic Capital’s focus sectors, with 17 platform investments made since 2001.

Nordic Capital’s previous experience in this sector includes investments such as Bambora, Board International, Conscia, Itiviti, Macrobond, Trustly and Signicat.

RegTech is Nordic Capital’s second technology and payments platform investment in 2020, following Siteimprove, a Software-as-a-Service (SaaS) company providing software solutions which improves digital accessibility and compliance, announced in September.

Featured image: Jürgen Lux, CEO of RegTech