Business model of Linedata

Customer Segments

Linedata offers a range of services, solutions, and software-as-a-service products to companies and institutions operating within the financial services sector. The Company’s clients can be organised broadly into the following categories:

• Investment Management, comprising private wealth managers, asset managers. hedge funds, pension and mutual funds, and third-party administrators.
• Credit Services, comprising consumer credit providers, automotive financing companies, mortgage lenders, and other credit and financing institutions;
• Other Financial Services, comprising various other financial service providers, such as insurance companies and pension fund managers; and
• Commercial Entities, comprising various commercial entities across multiple sectors that operate employee savings and pension programs.

Linedata is based in France, and primarily serves a European client base, organised into operations across Northern Europe and Southern Europe. The Company, however, serves an extensive international client base extending further afield, including across the North America, Asia Pacific, and Africa.

Value Propositions

Linedata provides value to its clients in the following ways:

• Its industry standing and reputation, with the Company established as a well-known and trusteed provider of services and solutions to customers operating within the credit and investment management sectors, having a positive reputation and track record;
• Its broad portfolio of services and solutions, with the Company offering a broad range of services and solutions – including software-as-a-service products – that cater to a diverse network of clients;
• Its international sales and operational reach, with the Company maintaining operations in more than 50 countries worldwide – including across Europe, North America, Asia Pacific, and Africa – and serving a global client base of more than 1,000 commercial and institutional entities;
• Its longstanding client relationships, with the Company committed to establishing and maintaining long-term relationships with its clients, and adapting their service offerings to suit the specific requirements of its customers; and
• Its industry expertise, with the Company employing a network of highly-trained professionals with backgrounds in financial services and technology, as well as a team of experienced industry executives.

Channels

Linedata operates a website at www.linedata.com, through which it provides information on its various products, services, and solutions. The Company does not operate an online sales channel. However, it does enable clients to register an interest in the Company’s products and solutions through an online contact form. Many of LInedata’s solutions are offered as software-as-a-service products, as well as directly by the Company’s team of professionals.

Linedata makes its sales through an in-house direct sales force which is organised geographically, with the Company arranging its operations into five segments: North America, Northern Europe, Southern Europe, Asia, and Africa. The Company’s sales personnel operate out of its network of sales and administrative offices based in these regions, including locations in Hong Kong, Spain, India, Luxembourg, the US, and the UK.

Linedata operates its own distribution and sales networks, and does not appear to rely to any significant degree in the services of resellers, distributors, and sales agents to conduct sales in international markets.

Customer Relationships

Linedata does not offer products and services to its clients on a self-service basis. Many of the Company’s software-as-a-service offerings, however, can be accessed and utilised independently by clients after purchase.

Linedata makes its sales through an in-house direct sales force. The Company’s sales personnel consult closely with new and existing clients in order to ensure that they are provided with the most appropriate solutions and services that cover their individual needs and circumstances.

Where possible, the Company seeks to offer tailored services that scaled to the exact requirements of its customer, with a view to securing long-term business relationships According to the Company’s website, around 75% of its clients have worked with the Company for more than five years.

Linedata offers ongoing support and guidance to its clients, who are able to contact dedicated support personnel over the phone or via email, or through an online contact form. The Company also offers a range of online support resources for each its products and solutions, as well as geographic and product-specific contact details.

Additionally, Linedata operates social media accounts with Twitter, LinkedIn, and Google+ through which it is able to publish company updates and interact directly with clients.

Key Activities

Linedata is a French provider of software and service solutions designed to assist clients in the investment, employee savings, insurance and savings, leasing and credit markets.

The Company aligns its operations into three core business segments: Asset Management, through which the Company offers a range of asset management solutions; Lending and leasing, through which the Company offers a range of leasing and credit finance solutions; and Other, through which the Company provides services to other clients in the financial services sector, notably insurance providers.

Linedata’s products and services principally span six complementary service lines: Implementation Services, Hosting and SAAS, Training Services, Client Support, Professional Services and Buy Side Managed Services. Linedata serves an international client base, maintain operations across markets in Europe, Asia, Africa, and North America.

Key Partners

Linedata works in close conjunction with a network of partners and organisation across multiple sectors, particularly within the financial services industry. These partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, comprising suppliers of services, equipment, and tools that are used across the Company’s operating segments, as well as companies to which certain non-technical functions can be outsourced;
• Technology and Development Partners, comprising various technology companies and software developers, particularly with a focus on the financial services industry, that assist the Company in developing effective solutions and maintaining its IT network;
• Joint Venture and Integration Partners, comprising various software-as-a-service providers and technology companies with which the Company provides joint services or integrated solutions to ensure that clients receive as exhaustive a service as possible; and
• Strategic and Alliance Partners, comprising companies from various industries, with which the Company works on a range of joint projects, including in marketing and branding.

Linedata has a number of key partnerships in place. This includes a number of recent partnerships launched with various financial technology and software-as-a-service providers, including with Networth Services, Confluence Technologies, and Integral.

Key Resources

Linedata’s key resources are its technologies and software solutions, its IT and communications infrastructure, its sales and distribution channels, its partnerships, and its personnel.

Linedata utilises various proprietary technologies in its software solutions. However, searches of records published by France’s National Institute of Industrial Property and by the US Patent and Trademark Office identified no patent applications filed in Linedata’s name, either as applicant or assignee.

Linedata owns and or leases a broad network of physical properties across Europe, Asia Pacific, and North America that comprise its network of sales and administrative offices. This includes locations in Hong Kong, India, the UK, France, and the US.

Cost Structure

Linedata incurs costs in relation to the development of its technologies and software solutions, the sale and delivery of its solutions and services, the maintenance of its IT and communications infrastructure, the procurement of professional and consulting services, the operation of its physical infrastructure, the implementation of marketing and advertising campaigns, the management of its partnerships, and the retention of its personnel.

In 2015 Linedata recorded purchases and external expenses – including subcontracting purchase costs, occupancy and rental expenses, professional fees, and bank charges – in the amount of €36.61 million, and employee expenses – including salaries and wages, social security contributions, and incentive bonuses – in the amount of €82.75 million.

Revenue Streams

Linedata generates revenue through the provision of various software and service solutions to clients operating within the financial services industry. This includes a range of software-as-a-service offerings. The Company principally derives revenue under individual sales and service contracts that are agreed on a case-by-case basis.

In 2015 Linedata generated revenue for the year in the amount of €172.33 million, up on the €157.97 million recorded by the Company in 2014. The majority of the Company’s revenue, around 59%, was attributed to its Asset Management segment, with its Lending and Leasing segment accounting for around 36%.