Shard Capital, a City of London wealth management firm, has agreed to buy a 50 percent stake in Dublin-based investment technology platform Omnium.
The deal, subject to approval by central bank financial regulators, gives Shard access to Omnium’s investment technology as well as the European Union market, which he says is important after Brexit.
Omnium, meanwhile, is securing financial support from Shard to finance its growth and will use this strategic merger to expand its services across Europe.
Omnium, based in Sandyford in Dublin, was founded in 2014 by investors including James Guerin, who runs a Berlin real estate development company, Natulis. Omnium was supported by Enterprise Ireland.
Shard, meanwhile, already had ties to Ireland as a fund manager for technology-driven venture capital firm Sure Valley Ventures, which has supported Irish start-ups such as the application of Buymie online grocery shopping.
Shard says his ties to Sure Valley gave him access to a “network” that led him to Omnium, which was looking for investment. Omnium provides technology to investment advisers and wealth managers to help them manage various assets and execute their trades on a single platform.
âThe result of the Brexit referendum has led us to consider a number of solutions on how best to expand our service offering in the EU. Ireland seemed like a natural jurisdiction, âsaid Toby Raincock, Managing Director of Shard, who has joined Omnium’s board.
Christopher Ovenden, Managing Director of Omnium, described Omnium as a âfinancial plumberâ for asset managers, with investment management increasingly focused on technology.
He suggested that demand for his platform “explodes through the roof” in the final year of the pandemic, reducing five years of a digital shift into one. The company has already started to expand in Europe.
âThis agreement is a vote of confidence in the company. It’s also one of the few bright spots we’ve seen from Brexit, âsaid Ovenden.
Mr. Guerin and his brother and fellow managing director Declan Guerin have resigned from the board of Omnium, whose advisers include Justin Cullen, the former director of Core Marketing who also recently helped run the owner of Joe.ie Maximum. Media through a complex restructuring.
Mr. Ovenden said some Omnium shareholders sold their shares to Shard. Documents filed for the Dublin group’s parent company, Naperte, also show that Shard injected â¬ 522,500 to fund it over the summer. Omnium’s latest accounts, for 2019, show annual losses of â¬ 418,000 as its business grows.
Shard Capital, which manages investments in artificial intelligence and virtual reality, as well as a loan fund for SMEs, is based in the city of London skyscraper known as the ‘Walkie Talkie’, which sits directly across the Thames from the building well known as The Shard.