Top five stories of the week – 26 August 2022
Here’s our pick of five of the best news stories from the world of finance and technology this week.
CSI sold to two private equity firms for $1.6 billion
CSI acquired for 1.6 billion dollars
US fintech solutions provider Computer Services Inc (CSI) is to be acquired by private equity firms Centerbridge and Bridgeport in a cash deal worth $1.6 billion.
CSI provides core processing, digital banking, managed cyber security, payment processing and regulatory compliance solutions to financial institutions.
The company’s shareholders are set to receive $58 per share in cash upon completion of the deal, which is expected to occur in Q4 2022, representing a 53% upside to CSI’s closing share price on August 19.
The transaction was unanimously approved by CSI’s board and founder John Williams. Williams, who founded CSI 60 years ago, says the deal represents good value for shareholders.
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Reserve Bank of India lifts boarding restrictions on American Express
The Reserve Bank of India (RBI) has lifted the business restrictions it imposed on American Express last year, allowing the firm to resume issuing cards to new customers in the country.
The RBI imposed the restrictions on the company in May 2021, denying it the ability to onboard new domestic customers on the card network due to non-compliance with an order to store payment system data from April 2018.
The RBI now says that thanks to “satisfactory compliance demonstrated by American Express”, the restrictions have been lifted with immediate effect.
An American Express spokesperson said: “We welcome today’s decision by the Reserve Bank of India, which enables the American Express Network to bring new customers on board immediately.”
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Alternative investment fintech iCapital acquires UBS Fund Advisor
Alternative investment fintech iCapital is set to buy UBS Fund Advisor for an undisclosed sum.
iCapital acquires UBS Fund Advisor
The deal includes UBS’s legacy proprietary alternative investment manager and the feeder fund platform it manages. The platform, known as AlphaKeys Funds, includes private equity, hedge funds and real estate feeder funds and represents more than $7 billion in client assets.
Following the acquisition, which is due to be completed in the second half of 2022, iCapital will take over the administration and operation of the platform, while UBS financial advisers will continue to serve their high and ultra-high net worth clients who have feeder funds.
Lawrence Calcano, chairman and CEO of iCapital, says the company “has a long-standing global relationship with UBS” where it uses its technology “to facilitate the management of their direct and feeder funds on a single platform and provide advisors with the tools they need to succeed.”
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Credit Suisse appoints a new CFO and CEO
Swiss banking giant Credit Suisse Group has appointed Dixit Joshi as its new Chief Financial Officer (CFO) and Francesca McDonagh as Chief Executive Officer (COO).
The bank has also appointed Michael J Rongetti as interim managing director of the asset management division.
Both Joshi and McDonagh will join Credit Suisse’s executive board and all three will report directly to newly appointed CEO Ulrich Körner.
McDonagh was previously announced as managing director of the group’s EMEA region, but Credit Suisse has now appointed Francesco De Ferrari, managing director of the wealth management division, to this role instead.
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Malaysia’s Kenanga partners with Ant Group to develop financial services super app
Malaysia’s largest independent investment bank, Kenanga, has tapped China’s Ant Group for its mobile development platform as the firm looks to launch a wealth management and financial services super app.
Kenanga partners with Ant Group to launch financial services super app
The super app, Malaysia’s first according to Kenanga, will be powered by Ant Group’s mobile platform-as-a-service (mPaaS) and will combine stock trading, digital investment management, an e-wallet, crypto trading and currency exchange capabilities.
Kenanga Investment Bank group managing director Datuk Chay Wai Leong says the company plans to unify a wide range of financial offerings under one roof, while making “value creation more accessible by democratizing financial services for millions of Malaysians around the country”.
After spending a year designing the app, the bank has signed a memorandum of understanding (MoU) with Ant Group’s digital technology unit “to develop this platform and bring it to life”, adds Datuk Chay.
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