Digital Transformation

LPA acquires Tel Aviv based Modelity Technologies in a strategic move to become the leading CapTech player

Written by Christopher Garner
Aug 13, 2019

Lucht Probst Associates (LPA) acquires 100% of the shares in Modelity, a leading Israeli tech company for the financial and capital market industry

Combining the product and customer portfolios of Modelity and LPA makes the combined company the CapTech market leader in Europe

International expansion continues with a location in the Israeli technology metropolis of Tel Aviv, one of the most important tech hotspots worldwide
Frankfurt am Main, Tel Aviv 13.08.2019: The contracts have been signed: LPA, a leading provider of technology innovations for capital markets and financial institutions (CapTech) has acquired 100% of the shares of Modelity Technologies Ltd. The company, which has had a new majority shareholder in Motive Partners since the fall of 2018, is thus making further progress in its internationalization and on its way to becoming the global market leader for CapTech.

CapTech companies develop technology solutions and products that help financial services companies to increase their ability to innovate in their capital market activities. Specifically, they use their offerings and services to support their customers in scaling their business activities (through automation for example) and improving their business processes through sustainable optimisation and digitalisation – always in compliance with existing and future regulatory standards.

By acquiring Modelity Technologies, an experienced CapTech provider that was established in 2000 and employs 80 highly skilled technology capital markets and regulatory professionals, LPA has significantly expanded its customer base outside the DACH region, making it the largest and leading CapTech provider in Europe. By integrating Modelity, LPA has added state-of-the-art products and solutions to its own extensive CapTech suite. Whereas LPA has focused its technological activities on the digitalisation and automation of documents and processes, for example, Modelity now adds a multi-award-winning technology for financial and regulatory analytics to complete LPA’s future offerings. Based on this technology, Modelity recently developed Unicost, a system for monitoring regulatory reporting (e.g. costs & charges, product governance) between MiFID manufacturers and distributors and marketplace, a fully automated multi-dealer platform for the issuance and processing of personal investment products.

With the company’s location in Tel Aviv, LPA is gaining access to an extensive pool of top talents and to the great innovative strength of the Israeli technology scene and can continue to expand its own CapTech expertise. This opens up new ways for the company to generate further renowned national and international customers and recruit highly talented professionals.
The management team of Modelity will continue to serve the company. The old and new CEO of Modelity is Ayal Leibowitz, one of the founders of the company, who has more than 20 years of experience in management and software development and capital markets. Asaf Seri will continue as President and Chief Operating Officer (COO). Like Leibowitz, he has many years of experience and extensive expertise in software development and project management.

Peter Schurau, CEO of LPA: “Modelity and Tel Aviv fit perfectly with LPA. Experts in the Israeli technology metropolis have long been setting new trends in the digitalisation of the financial market industry. Making use of this know-how, combining it with LPA’s own expertise and working with our new colleagues in Tel Aviv on developing innovative products and solutions – that’s a really exciting prospect. I am very much looking forward to working with Ayal Leibowitz, Asaf Seri and the entire Modelity team.”

Stefan Lucht and Roland Probst, founders and directors of LPA: “The integration of Modelity Technologies is a strategic and significant milestone in the history of our company and adds the latest piece to our internationalisation strategy jigsaw. Above all, it strengthens our positioning as the market leader in the CapTech segment. Together we will be able to gain major new customers in highly attractive regional markets.”

Ayal Leibowitz, CEO of Modelity and new member of the Global Executive Committee of LPA: “The fact that we now belong to the LPA group is a wonderful opportunity for Modelity to add our in-depth expertise acquired over many years in developing technology solutions for the capital markets and to apply our know-how in a powerful group of companies. We will work together to achieve our common goal to become the leading global provider of capital market technologies”

About Lucht Probst Associates (LPA):Lucht Probst Associates is a technology company specialising in the demands and characteristics of the capital market sector. The core business of LPA is the continual development and expansion of its portfolio of technology solutions for automated consultancy (LPA Digital Client Interaction), sales (LPA Captano) and documentation (LPADoc) for financial instruments, structured products and OTC derivatives. LPA offers market-leading solutions that support banks in efficient compliance with the requirements of MiFID II, PRIIPs and FIDLEG in conjunction with the Key Investor Information Document (KIID). This document contains the essential information about a financial product, including financial terms, risks and historical performance data for private investors. In addition to the development of technology solutions for the capital market, LPA offers strategic consultation, management and implementation services. Following the integration of Modelity, almost 300 technology and capital market experts are working on the international client portfolio at nine international locations.

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