Fidelity Buys Shoobx

Fidelity Investments acquired Shoobx, a provider of automated money management operations and software for financing private companies.

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Fidelity acquired Shoobx, a provider of automated equity management operations and financing software. Source: Pixabay.com

Fidelity Investments acquired Shoobx, a provider of automated money management operations and software for financing private companies.

The companies did not disclose the value of the transaction.

Fidelity specializes in providing accounting-related services. The company has also developed a set of tools for the administration of the equity compensation plan. The firm serves about 700 clients.

The purchase transaction is a continuation of the commercial relationship between Fidelity and Shoobx that originated in 2021. As part of the initial partnership, Shoobx entered the market with private capital management proposals. The company used the experience of the second participant of cooperation in the field of compensation for equity participation and benefits management.

Kevin Barry, head of Fidelity Workplace Investing, notes that the commercial relationship between the two companies has proved effective. He also stated that there is currently an increase in demand for capital management services from private firms, the scope of which is expanding. Kevin Barry called the acquisition of Shoobx a natural continuation of the partnership between the two companies.

Fidelity states that the implementation of the transaction will provide an opportunity to offer customers the entire set of capitalization table tools to manage their capital. Also, an expanded list of functions will allow providing services for the calculation and constant revision of the market value of firms.

After the transaction is completed, Fidelity will offer consumers the automatic creation of due diligence documents, secure data storage, and services for the exchange of confidential information. The company will also provide clients with an investment planning model and create scenarios for the subsequent use of financial investments.

Fidelity will offer management tools for shareholders and directorates. Also, the list of services provided will include support for the conversion of shares from private to public and the administration of equity compensation.

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