Private equity firm Bregal Sagemount has acquired Discovery Data Inc., a provider of data on retail financial services firms from the Ipreo LLC software company.
At the same time, Bregal Sagemount’s backing has helped Discovery Data acquire Meridian-IQ, which provides online databases and adviser market information, from AIQ Inc. Terms of the deals were not disclosed.
New York-based Bregal Sagemount focuses on investing $15 million to $150 million per deal in companies in high-growth sectors, including software, digital infrastructure, healthcare IT, business and consumer services, and financial technology.Discovery Data Bob Herrmann, says that with Bregal Sagemount’s investment experience and capital, his company plans to accelerate its development of new products.
“These acquisitions provide us the opportunity to bring together two leading companies in the wealth management information sector,” says Daniel Kim, partner at Bregal Sagemount. “The demand for this comprehensive data set is expanding rapidly, and our investment will provide Discovery Data the resources to continue its expansion.”
Discovery Data, based in Eatontown, New Jersey, provides access to profiles for all broker-dealers and registered investment advisers to more than 680,000 reps, 2,300 trust companies and 1.8 million insurance agents. With Meridian-IQ, Discovery Data’s clients include nearly 900 institutions and more than 20,000 users, including asset managers, wealth managers, custodians, clearing firms, insurance companies and service providers.
Discovery Data’s cloud-based system includes hundreds of data fields and business intelligence tools, along with services to remove errors from the data, a Salesforce customer relationship management data integration app, data feeds, market insight and strategic guidance.
Besides Kim, Bregal Sagemount’s investment team for the Discovery Data deal includes Blair Greenberg and Arjun Mehta. GrowthCap LLC was the financial adviser to AIQ on the deal, while Hunton & Williams LLP was legal counsel to Bregal Sagemount.
For financial services industry deals, dealmakers as recently as six months ago have reported that they expect much slower growth for transactions in the financial services, insurance and real estate (FIRE) sector than one year earlier, according to Mergers & Acquisitions Mid-Market Pulse (MMP).