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
René Blaschke, Managing Director of cleversoft, explains the strategic rationale of the acquisition: “We are excited to welcome Philippe and his team to the cleversoft family. By joining forces with CDDS, cleversoft strengthens its footprint in the French-speaking part of Europe, and further enriches its product portfolio, thereby extending the AML and KYC platform offering for all clients. The merger opens new opportunities for both companies to jointly grow in the GRC market and beyond.”
Philippe Lassine, CEO of CDDS, adds: “We are look forward to working with cleversoft and their international ecosystem to provide our clients with a broader offering to comply with their regulatory obligations. Over the last 12 years, CDDS evolved into a leading player in the European AML market. With cleversoft, we found the right partner for the next growth phase of our company. We are, therefore, happy to contribute to the further development of CDDS and the new group as we look ahead with great confidence.”
Sven van Berge Henegouwen (Partner Main Capital DACH): “Main Capital and cleversoft follow a joint buy and build strategy since 2018 in order to complement the group’s product offering and strengthen its leading position in the European RegTech market. We are very impressed by CDDS’ development and how the team positioned the company in the GRC market. With their specialized KYC and AML solutions, the offering is highly complementary to the current ForensicCloud solutions from BusinessForensics, thus providing further value for all customers.”
Founded in 2004, the cleversoft group is a leading cloud-based RegTech provider for financial services. The company is headquartered in Munich with offices in Amsterdam, The Hague, Frankfurt, Nuremberg, Luxembourg and Sofia. cleversoft provides digital solutions to more than 300 financial institutions around the globe to support business processes for regulatory documents, marketing materials, as well as commission payments including regulations like MIFID II, 6AMLD, PIFI2, Solvency II, IFRS 17, PRIIPs, IORP.
Founded in 2009 in Luxembourg, CDDS is a holistic software developer and data provider specialized in Anti-Money-Laundering (AML) solutions for banks, asset managers, and other financial institutions. With a strong experience in GRC (Governance, Risk & Compliance), CDDS’ solutions help their clients to be compliant with regards to their AML obligations throughout Europe.
Main Capital is a strategic investor with an exclusive focus on the software sector in the Benelux, DACH and Nordics. Main has a long-term horizon around successful partnerships with management teams, with the aim of building larger software groups together. Main has approximately €1 billion in assets under management for investments in mature and growing software companies. Within the software sector, Main is the most specialized player in management buyouts and later-stage growth capital for acquisitions. An experienced team of professionals manages these strategic investment funds from offices in The Hague, Düsseldorf and Stockholm.
Successful former companies that grew significantly under Main’s leadership include Connexys (HR software), Roxit (NL, government software), Axxerion (NL, facilities management software), Ymor (NL, APM software), Onguard (NL, credit management software), TPSC (NL, healthcare GRC software) and RVC (NL, healthcare software).