Nutmeg

Nutmeg is one of the largest financial robotics consultants in the UK. Founded in 2011, the company offers a wide range of investment accounts, including ISA accounts, pension accounts and general investment accounts. Among Nutmeg's competitors: Wealthsimple, Moneyfarm and Moneybox. As of June 2021, the company manages assets worth more than $4.9 billion.

History

2021: JPMorgan Chase bought Nutmeg

In mid-June 2021, JPMorgan Chase announced the purchase of the British investment management company Nutmeg. Financial details of the transaction are not disclosed.

The US banking giant said the deal, which still requires regulatory approval, will allow its plans to launch an autonomous digital bank in the UK at the end of 2021.

JPMorgan Chase acquired Nutmeg

We build Chase in the UK from scratch, using the latest technologies and putting the experience of customers at the forefront of our offer, the principles that Nutmeg shares with us, "said Sanoke Vishwanathan, JPMorgan representative, in a statement.

The deal came a few months after the two companies announced a partnership that allowed Nutmeg to offer ETFs created with JPMorgan.

Nutmeg CEO Neil Alexander noted that after the merger with JPMorgan, customers should expect the same level of transparency, convenience and service that helped Nutmeg in the past become the leading investment management company in the UK.

Instead of using investment technologies already developed in the United States, the bank chose to buy a company with a 10-year history. According to the companies, this is due to the fact that in the UK and Europe there are different regulatory requirements.

JPMorgan Securities acted as financial advisor to JPMorgan on the transaction, and Freshfields Bruckhaus Deringer acted as legal adviser.

Prior to the takeover agreement, Nutmeg raised a total of more than $150 million from investors, including Goldman Sachs and the British venture capital company Balderton Capital.^[1]

Earlier, JPMorgan CEO Jamie Dimon said the company intends to behave "much more aggressively" against new acquisitions in order to expand its capabilities in the international market. Perhaps the reason for the change in tactics was the transactions made by the bank's rival, Morgan Stanley, which spent $20 billion on the purchase of E-Trade and Eaton Vance. The American bank intends to face British competitors in the banking service sector and plans to offer new customers a full range of services under its Chase brand. The main competitor of the bank will be the consumer brand Marcus, owned by Goldman Sachs and launched in the UK in 2018.

We build Chase in the UK from scratch, using the latest technologies and focusing our offers on customer experience - principles that also guide Nutmeg, "said Sanoke Viswanathan, CEO of International Transactions at JPMorgan Chase.

The international digital capital management division of JPMorgan Chase will be based on Nutmeg, which over the years of its existence has attracted more than 140,000 customers (by June 2021) and manages assets worth more than $4.89 billion.

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