DTCC Acquires Avox
The Depository Trust & Clearing Corporation (DTCC) has acquired the outstanding shares of Avox, a reference data business located in the UK.
Avox’s primary business is cleansing and maintaining high-quality reference information on legal entities and counterparties needed by financial services to support a variety of operational, risk management and regulatory compliance activities, including know your customer (KYC) and anti-money laundering (AML) reporting. Avox provides an automated, centralised corporate database resource, with readily accessible information on the legal name, address, corporate hierarchies, immediate and ultimate parent, industry sector codes, company identifiers, and regulator information applicable to these companies.
“The need for accurate, well maintained reference data on securities and legal entities is a growing priority for the financial services industry, to help manage credit exposure, meet new regulatory compliance requirements and to improve transparency from the issuer to the end investor,” said Patrick Kirby, DTCC managing director, asset services. “The acquisition of Avox is a natural complement and part of a global strategy DTCC has underway to provide our customers with a full suite of value-added data capabilities.
The all-cash deal, which valued the business at a low double-digit million pound figure, was approved by the DTCC board of directors earlier this month. Deutsche Börse, which held the majority of shares in Avox, formally closed the transaction with DTCC on 1 July. Under the terms of the deal, the two founders of Avox, Ken Price and Steve French, who were also minority shareholders, will head the company in the capacity of chief executive officer (CEO) and chief operating officer (COO), respectively.