Capgemini buys financial crime compliance division of Exiger

Capgemini has closed its second acquisition of the year, with the purchase of the Financial Crime Compliance division of Exiger.

As part of the deal, team members of Exiger’s Financial Crime Compliance division in North America, Europe, the Middle East, and Asia Pacific will join Capgemini. How many team members are crossing, as well as the financial value of the deal, has not been disclosed.

“The new team brings deep domain regulatory expertise to help us to further address growing client demand for financial crime compliance services,” said Kartik Ramakrishnan, a leader in Capgemini’s Financial Services practice.

On the back of an ever-increasing regulatory landscape, financial services institutions – in particular banks – are struggling to keep up with the pace of change. At the same time, the cost of compliance is spiralling at a worrying pace. According to one estimate, by LexisNexis Risk Solutions, financial institutions last year spent more than $206 billion on compliance.

The Financial Crime Compliance division of Exiger specialises in advisory, analytics and managed services in the areas of anti-money laundering, know your customer, anti-bribery, corruption, sanctions, and fraud. Its client roster includes major players in banking, capital markets and fintechs.

“This acquisition strengthens our offerings in financial crime, risk management and regulatory compliance services,” said Ramakrishnan.

Meanwhile, for Exiger, the move is part of its strategy to focus on its core business – solutions. “This sale marks an enormous milestone in the evolution and growth of Exiger. It allows us to focus on our core third-party risk and supply chain management technology business,” said Exiger CEO Brandon Daniels.

“We’re thrilled that our advisory team will be able to continue the next leg of their growth journey with Capgemini, a distinct leader in the landscape.”

The acquisition comes within months of Capgemini significantly boosting its Japan business with the purchase of BTC Corporation, a cloud and digital services provider with around 500 staff.