Canadian fund manager Caisse de dépôt et placement du Québec (CDPQ) and UK-based Generation Investment Management have agreed to acquire a controlling interest in FNZ, a platform-as-a-service (PaaS) provider to the wealth management industry in Europe.
The stake was held by private equity firms General Atlantic and H.I.G. Capital.
FNZ, which the transaction values at £1.65bn, manages more than £300bn in assets for clients including Standard Aberdeen, Barclays, Lloyds Bank, Vanguard, Generali, Quilter, Santander, and Aviva.
Around 400 employees have shareholding in FNZ. Once the transaction is closed, they will retain around one-third of the company’s equity.
CDPQ executive vice-president Stephane Etroy said: “Through our newly announced partnership with Generation, we are creating a new model of sustainable equity investing which reflects the ethos of both companies, and is ideally suited to the objectives of long term sustainable value creation.”
The firm has a workforce of more than 1,400 in the UK, Czech Republic, Shanghai, Singapore, Australia and New Zealand.
Generation Investment Management co-founder David Blood said: “We believe our long-term approach will suit the company and allow it to continue to invest in its technology and service proposition to the benefit of savers and pensioners, as well its employees, customers and investors.”