NEW YORK — BlackRock has agreed to acquire Cachematrix, a leading provider of financial technology which simplifies the cash management process for banks and their corporate clients in a streamlined, open-architecture platform. Terms of the deal weren’t disclosed.
Cachematrix supports approximately $200 billion in client assets through relationships with many of the world’s largest banks and asset managers. The company enables financial institutions to provide corporate clients with a portal for allocating cash to a variety of money market funds and direct cash instruments. Corporate clients are also able to seamlessly analyze, perform compliance checks and generate detailed reports for their cash investments on the Cachematrix platform.
BlackRock is one of the most experienced and largest cash management providers in the world, managing approximately $390 billion in cash management assets for corporations, banks, foundations, insurance companies and public funds. The acquisition of Cachematrix builds on BlackRock’s momentum in cash management, including the recent transfer of investment responsibility for more than $80 billion in cash management assets from Bank of America Global Capital Management to BlackRock. The Cachematrix acquisition is part of BlackRock’s strategy to invest in scalable technology solutions that leverage its global platform for the benefit of clients and shareholders.
“Regulatory changes in both the US and Europe have fundamentally changed the needs of cash investors. In addition to world class products, cash investors now require new tools to streamline liquidity management and better manage risk,” said Tom Callahan, Head of BlackRock’s Global Cash Management Business. “Building on BlackRock’s strength and scale in the cash management space and leadership position in technology and risk management, this transaction reinforces our commitment to adapt our business for clients’ evolving needs, and to be the leading provider of comprehensive cash management solutions.”
“Joining forces with BlackRock will enhance our ability to deliver technology solutions that simplify cash management for banks and their corporate clients,“ said George Hagerman, Chairman and Founder of Cachematrix, “Together we will broaden our reach with best-in-class financial technology and world-class investment products to help clients address their liquidity needs.”
This strategic acquisition builds upon BlackRock’s global cash management expertise and is an extension of BlackRock’s business-to-business model of offering scalable risk management, technology, and advisory services to a broad range of institutions. BlackRock’s partner firms are increasingly looking to technology to improve their ability to meet their clients’ needs. BlackRock’s platform of financial technology solutions includes Aladdin, iRetire, Aladdin Risk for Wealth Management and FutureAdvisor.