Capitolis acquires Capitalab for $46M to expand derivatives optimization offering
The acquisition by the fintech unicorn comes one week after it announced a $20 million funding round from leading global financial institutions Citi, Morgan Stanley, State Street, and UBS.
Fintech unicorn Capitolis has acquired British company Capitalab, which specializes in optimization and compression services to reduce the counterparty risk, size and costs of maintaining derivatives portfolios, from the BGC Group for $46 million. This acquisition will enable Capitolis to expand its offerings within the optimization industry. Capitolis reports that it has already facilitated the offsetting of over $10 trillion in interest rate derivatives.
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"Optimization of interest rate derivatives is a significant and crucial area of the capital market, and executing it effectively is essential for the financial system and its participants," said Gil Mandelzis, CEO and founder of Capitolis.
As part of the deal, Gavin Jackson, CEO of Capitalab, will join Capitolis' management team. This acquisition follows recent investments in Capitolis by leading global financial institutions, including Citi, Morgan Stanley, State Street, and UBS. It also builds on Capitolis' previous acquisition of LMRKTS in 2021.
Capitolis announced last week that Citi and State Street, both existing investors in the company, as well as new investors Morgan Stanley, and UBS, will invest $5 million and will join other existing investors including Andreessen Horowitz (a16z), Index Ventures, Sequoia Capital, S Capital, Spark Capital, SVB Capital, Canapi Ventures, 9Yards Capital, Standard Chartered and J.P. Morgan.
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Capitolis raised a $110 million Series D at a $1.6 billion valuation in March 2022. The company did not disclose its valuation in the latest funding round. Capitolis, which has raised a total of around $300 million to date, employs 130 people in Israel and the U.S.
Founded in 2017, Capitolis has developed a software as a service (SaaS) platform that provides financial resource optimization for capital markets, and enables financial institutions to allocate their capital more efficiently and in line with the constantly changing regulatory landscape.
