IHS Markit (INFO) Buys Compliance Technology Provider Cappitech

IHS Markit Ltd. INFO yesterday announced the acquisition of privately-held Israel-based compliance technology provider, Cappitech for an undisclosed amount.

Cappitech offers regulatory reporting, execution analysis and business intelligence solutions. Users of the company’s cloud-based platform include global banks, asset managers, brokers, hedge funds and corporations.

Enhancing Regulatory Reporting Capabilities

Through the acquisition, IHS Markit is eyeing expansion of its suite of its global multi-asset class transaction regulatory reporting offerings.

Notably, the duo had business relationship for the past two years with IHS Markit choosing Cappitech’s platform as an important component of its Securities Financing Transactions Regulation solution in 2019.

"Cappitech’s platform complements our existing offering, enabling us to provide the most comprehensive and scalable integrated financial regulatory service to customers," said Pierre Khemdoudi, managing director of Global Equities at IHS Markit.

Notably, IHS Markit had a decent run on the bourses over the past six months. The company’s shares have gained 15.6% against the 8% rally of the industry it belongs to and 21.2% growth of the Zacks S&P 500 composite.

Zacks Rank & Stocks to Consider

IHS Markit currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup (NYSE:MAN) MAN,FactSet FDS andBooz Allen (NYSE:BAH) Hamilton BAH, each carrying a Zacks #2 Rank (Buy).

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, FactSet and Cross Country Booz Allen is 3.5%, 8.5% and 10.6%, respectively.

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