Welsh, Carson, Anderson & Stowe exits AIM

SimCorp said June 6 that it acquired AIM Holding SCA for 60 million euros ($67.4 mln). Welsh, Carson, Anderson & Stowe is the seller. AIM provides data management solutions with a specialized focus on the buy-side. Update: Arma Partners provided financial advice to AIM.


SimCorp acquires data management software provider AIM Software

June 6, 2019 – SimCorp announces that it has signed an agreement to acquire all shares in AIM Holding SCA and its subsidiaries (“AIM Software”), for a total enterprise value of EUR 60m. Closing of the acquisition is expected to be around August 1, 2019, subject to certain conditions.

AIM Software is a leading provider of data management solutions with a specialized focus on the buy-side and a long-standing partner to SimCorp. AIM Software has around 75 employees, with offices in Vienna, London and New York. Additionally, it has 40 people with a third-party service provider. In 2018, AIM Software generated revenue of EUR 15.5m.*

The acquisition will strengthen SimCorp’s strategic position and competitiveness in the market. Data management is an area of growing importance to buy side firms and increasingly central to any investment manager’s operational foundation. Also, it is often a key consideration in system selection processes. AIM Software’s market-leading solution will provide SimCorp with an even stronger value proposition, adding new capabilities in an area naturally linked to its existing front-to-back offering.

SimCorp expects to realize cross-selling synergies from the complimentary products and shared target client base, as well as cost synergies, for instance from combining the two firm’s office locations.

In 2019, SimCorp expects the acquisition to increase its revenue by approximately 2% and have a negative impact on its EBIT margin of approximately 1%-point due to lower initial profitability and certain non-recurring costs associated with the acquisition. As a consequence, SimCorp adjusts its expectations for revenue growth measured in local currencies for 2019 to between 10% and 15% (previously 8%-13%), and for EBIT margin measured in local currencies for 2019 to be between 24.5% and 27.5% (previously 25.5%-28.5%).

The acquisition is also expected to be EBIT margin dilutive in 2020, while EBIT margin neutral from 2021 due to full impact of synergy realizations.

Following the acquisition, AIM Software will be fully integrated into SimCorp. Its product GAIN will be renamed SimCorp Gain and become a core component of SimCorp’s future data management offering.

The acquisition will be financed by own cash reserves and credit facilities.

SimCorp will complete its “Safe Harbour” share buy-back program of EUR 12.5m initiated in connection with release of the 2018 Annual Report, but does not plan to initiate a new program in 2019 due to the acquisition.

Gayatri Raman, CEO of AIM Software, comments: “AIM and SimCorp have had a long-standing, successful partnership, working closely to serve buy side clients globally. The AIM team is excited to continue our journey on becoming a leader in data management for the buy-side as part of SimCorp. SimCorp’s global market reach, commitment to its employees, along with substantial investments in R&D, will allow us to continue to deliver innovative data management solutions to our clients.”

Klaus Holse, CEO of SimCorp, comments: ”We are excited to welcome AIM’s team to the SimCorp family and AIM’s clients to our global client community. AIM’s market-leading data management solution, GAIN, is a valuable addition to our portfolio, supplementing our offering in an area of strategic importance to our clients. The combination of AIM’s data management capabilities and SimCorp’s integrated front-to-back, multi-asset investment solution will allow us to provide asset managers and asset owners alike with an even more comprehensive end-to-end offering, further strengthening our leadership position in an ever-evolving industry.”