Fidelity Investments acquires Fintech firm Shoobx for an undisclosed sum
The financial details of the deal remain undisclosed, but comes as the first acquisition Fidelity Investments has made in about 7 years.
Fidelity Investments, one of the world’s largest financial services providers, has announced its full acquisition of a global fintech company, Shoobx. As revealed by the company, the acquisition will position it right to deepen its foothold in the private market where it currently has a very dominant influence.
Shoobx provides automated stock management operations and financing software for private companies at all stages of growth, up to and including an initial public offering (IPO). Shoobx’s offerings align well with one of Fidelity Investments’ offshoots, Stock Plan Services, a division of the company’s Workplace Investing Division.
As a new entity under the Fidelity umbrella, Shoobx will be packaged under Stock Plan Services and help provide a complete stock management solution to the private market. Fidelity and Shoobx’s offerings in this space evolved over more than a year since both firms joined forces to work together in 2021.
“Given the success of our commercial relationship with Shoobx and the growing demand from private companies to support them as they scale and grow, including helping their employees manage their financial well-being, the acquisition of Shoobx was a natural next step in our relationship, ” said Kevin Barry, head of Fidelity Workplace Investing. “Together, we will accelerate the development of new and innovative solutions designed to help private companies confidently navigate the complex journey all the way to an exit or IPO.”
Some of these solutions, as pointed out by Barry, will border on the administration of equity compensation and benefits that Fidelity is known for, as well as the equity management capabilities, governance tools and data room solutions that Shoobx has proven to have unique expertise in.
The financial details of the deal remain undisclosed, but comes as the first acquisition the Boston, Massachusetts-based firm has made in about 7 years.
Fidelity Investments as the right fit for Shoobx
Mergers and acquisitions (M&A) are a very important venture, one that can make or break several of the companies involved. With Shoobx agreeing to go under Fidelity Investments, the startup believes the financial giant will provide the perfect environment to scale up.
“Fidelity’s financial strength, market leadership and enduring commitment to the customer make this acquisition a perfect environment for Shoobx – allowing us to continue to innovate to meet the complex needs of our existing customers while accelerating our expansion in the private market, ” said Jason Furtado, CEO and co-founder of Shoobx. “Joining Fidelity is just the beginning of what will be a long and rewarding journey for our clients and their employees, along with our own talented team.”
Some of the areas that the duo of Fidelity and Shoobx will offer value to clients include innovative technology solutions for all companies regardless of their growth stage, creation of due diligence solutions and data storage and modeling capabilities among others.
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