Israeli fintech co Capitolis buys UK co Capitalab

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The $46 million acquisition will allow Capitolis, a market leader in the optimization and compression space, to offer more optimization and compression solutions to the industry.

Israeli fintech company Capitolis today announced the acquisition of UK rates portfolio compression and margin optimization company Capitalab from BGC Group for $46 million. The acquisition will allow Capitolis, a market leader in the optimization and compression space, to offer more optimization and compression solutions to the industry.

The acquisition comes amid rapid growth for Capitolis. The company has launched many new products and experienced strong network expansion over the past year. Capitalab will expand the company’s growing network of the world’s most important financial institutions and creates opportunities to bring in more market participants through Capitalab’s strong market hold in rates portfolio compression and margin optimization. To date, Capitalab has compressed a gross notional amount of more than $10 trillion of options contracts.

Capitolis founder and CEO Gil Mandelzis said, "Portfolio compression and margin optimization are extremely important to the capital markets and, when properly executed, truly helps the financial system and its participants. Capitalab’s highly innovative technology complements our existing suite of award-winning solutions and together we will create a ‘one-stop shop’ for compression. We look forward to welcoming the team and believe that together we can take their unique offering to the next level".

Capitolis founder and CEO Gavin Jackson, who will join Capitolis's management team, added, "We are thrilled to join forces with Capitolis, which will allow us to combine our strengths, talents and shared vision to create something even more remarkable. This powerful combination will enable us to deliver an even more exceptional service to our clients, ensuring their needs remain at the heart of everything we do."

The acquisition comes after last week Capitolis announced a $20 million strategic investment from four leading global banks, led by Citi and including State Street, Morgan Stanley, and UBS.

Published by Globes, Israel business news - en.globes.co.il - on December 3, 2024.

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