After years of discussion and three months of planning, eFront announced today that it has acquired software provider AnalytX, making them the world's largest provider of alternative investment software.
AnalytX is based in the US and Europe, and specializes in front-to-back office technology for small to medium sized firms. The acquirer, eFront, has a substantial global presence and caters to high end, large sized firms. Together, eFront will be able to serve the entire spectrum of solutions to small through large firms, and offer services in markets world-wide.
"It's a combination of the right people, the right product, and the right mindset," said Olivier Dellenbach, CEO of eFront in a phone interview. He explains that Analytx and eFront have long competed to be #1 in the industry, but as both served different segments of the market, it would have been difficult for either to scale to extremes. "So we finally had the sense to buy AnalytX."
[This Is Why Technology Spending Can Stymie Innovation, see Ivy Schmerken's story on Interop New York 2013 Information Week CIO Summit last week,.]
While eFront's customers, typically served with sophisticated and highly customized solutions, will not directly benefit from the acquisition, Analytx clients are in for some good news.
Dellenbach explains some of the Analytic clients were constrained with their product management solutions, perhaps because they are too light, and can now migrate to eFront solutions. eFront also has a large scale organizations including in Asia, where, Analytx had not had much prior success in selling their products. "There are a lot of synergies on the sell side, an emerging network, and we can always sell complimentary products to their clients,"
According to the press release, "The acquisition forms the latest chapter of a period of significant growth for eFront, and builds on the momentum of its acquisition of Investment Café last year. During the past five years the company has enjoyed a compound annual growth rate of 30 percent and opened new offices in Sydney, Abu Dhabi and San Francisco. It also comes during a period of ever more onerous regulatory requirements, reduced margins, and increasing pressure on costs for the alternative investment industry, necessitating the deployment of modern, sophisticated investment management systems."