Elvinger Hoss Prussen advised Cleversoft Group GmbH on the deal.
Cleversoft Group GmbH, backed by Main Capital, completed the 100% acquisition of CDDS, a Luxembourg based leading software and data provider for Anti-Money Laundering (AML) and Know Your Customer (KYC) solutions, in order to accelerate international expansion and product innovation in the RegTech industry.
Cleversoft group is a Munich-based RegTech provider for the financial services sector.
Customer Due Diligence Solutions (CDDS), founded in 2009 by Philippe Lassine, has developed into a market-leading provider in the Luxembourg GRC (Governance, Risk & Compliance) sector. CDDS provides Anti-Money-Laundering (AML) software that can automatically carry out checks for official sanctions, Politically Exposed Persons (PEP) lists, and adverse media for single client names and large databases — something unique in the industry. The automation of these types of checks ensure adherence to various AML and KYC compliance regulations while providing risk classifications for each individual.
In addition to its software solution, CDDS maintains and updates a comprehensive database to perform the name checks and is, therefore, not dependent on a third-party vendor. The company currently serves over 700 clients in the financial services industry and adjacent verticals (e.g., banks, asset managers, trust service providers, etc.), located in over 40 countries, including Luxembourg, Monaco, Switzerland, France, and The Netherlands.
CDDS marks the third step in cleversoft’s buy-and-build strategy, after the combination with the risk and regulatory reporting expert, SecondFloor, in 2019 and the financial crime risk surveillance solution provider, BusinessForensics, in 2020. The product portfolio of CDDS is complementary to cleversoft’s current AML offering and fits well into the group’s path to establish its financial crime suite as the one-stop-shop solution in the market for increasing AML/KYC obligations that financial institutions face under the 6th AML Directive. Together, cleversoft group and CDDS create an organization with more than 180 employees and a strong footprint in the DACH, Benelux, Nordics and French regulatory compliance marketsOver the last years both companies grew organically with ca. 20% p.a. and are on track to jointly reach over EUR 20M in revenues in 2021
The Elvinger Hoss Prussen team was led by partners Patrick Santer (Picture, corporate) and Linda Funck (corporate, data protection and IP). They were assisted by partner Florence Apostolou (employment), counsel Emmanuèle de Dampierre (data protection and all IP aspects of the transaction), and senior associate Jean-Baptiste Lhuillier and associate Nicolas Gilbert (corporate).
Involved fees earner: Florence Apostolou – Elvinger Hoss Prussen; Emmanuèle de Dampierre – Elvinger Hoss Prussen; Linda Funck – Elvinger Hoss Prussen; Nicolas Gilbert – Elvinger Hoss Prussen; Jean-Baptiste Lhuillier – Elvinger Hoss Prussen; Patrick Santer – Elvinger Hoss Prussen;
Law Firms: Elvinger Hoss Prussen;
Clients: Cleversoft GmbH;