Yahoo Finance JPMorgan (JPM) to Buy Investment Analytics Software Firm Aumni
JPMorgan JPM has entered an agreement to acquire Aumni. Founded in 2018, Aumni provides investment analytics software to venture capitalists. The financial terms of the deal, expected to close in the first half of 2023, were not disclosed.
Aumni’s proprietary data analytics engine structures, tracks and analyzes essential legal and economic terms underpinning growth-stage private market transactions, placing critical portfolio investment terms within users’ easy reach.
Aumni has a client base of more than 300 institutions and has evaluated more than $600 billion in invested capital across 17,000 private companies.
The acquisition strengthens JPM’s commitment to building a leading private markets platform for companies, their employees and investors, as well as its confidence in the resilience of the venture-backed ecosystem.
Through continued investment in Aumni and its other private market assets, JPMorgan is positioned to deliver an industry-leading suite of innovative solutions to the private markets.
Michael Elanjian, the head of digital investment banking and the head of digital private markets, JPMorgan, stated, “We’re thrilled to see this collaboration come to fruition as J.P. Morgan first invested in Aumni in 2021 and quickly realized shared synergies of providing more transparency to the private markets. Aumni’s market-leading data structuring and portfolio monitoring solutions, combined with the capital raising and cap table management services of Capital Connect and Global Shares, further enhances the ecosystem of digital solutions that J.P. Morgan is building for companies and investors in both growth and later-stage private markets.”
Aumni’s CEO, Tony Lewis, informed, “We are excited to partner with J.P. Morgan, expediting the realization of our vision to bring more structure, transparency and liquidity to the historically opaque private markets. Together, we can create a best-in-class suite of services for private market participants, enhancing the experience for all current and future clients.”
Our Take
Supported by a solid balance sheet position, JPMorgan has been growing through on-bolt acquisitions, both domestic and international. The bank’s inorganic growth efforts have helped in revenue expansion.
Such strategic acquisitions are expected to keep supporting the bank's plan to diversify revenues, and expand the fee income product suite and consumer bank digitally.
In the past six months, shares of JPMorgan have rallied 19.1% compared with the industry’s rise of 1.1%.
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Currently, JPM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Efforts by Other Firms
Amid a challenging operating backdrop due to the expectations of an economic slowdown, finance companies are undertaking expansion moves through acquisitions. Recently, Bank of Montreal BMO announced the closure of its acquisition of Bank of the West from BNP Paribas BNPQY.
With the deal, BMO expands its presence across more than 500 additional branches, and commercial and wealth offices in the major U.S. growth markets. For BNPQY, the sale is part of its efforts to streamline operations and enhance operating efficiency.
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