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Yet another London AI firm has been snapped up by an American giant

Sybenetix, the London-based software company that is utilising algorithms to snag rogue traders, has been acquired by US giant Nasdaq in an undisclosed deal that yet again highlights the capital’s world-leading reputation in AI and machine learning.

The business, which has been operating since 2011, has developed software which utilises algorithms to analyse and learn behaviours of individuals across an organisation, allowing it to detect unusual trading behaviour and flag it with the relevant compliance team.

Operating in the so-called RegTech sphere, Sybenetix’s products have been touted as a way for overburdened firms to meet the ever growing list of financial regulations with which they must comply in the wake of the 2008 financial crisis.

The acquisition marks a significant step up for the AI business and according to the FT is part of a major innovation drive from Nasdaq’s new Chief Executive, Adena Friedman.

Commenting following the acquisition, which Nasdaq said would be satisfied in cash, Friedman said: “Nasdaq is investing in the technologies, talent and capabilities that solve the complex challenges our clients face.

“We believe behavioral science, cognitive computing and machine intelligence are essential to a successful, holistic surveillance offering and critical to efficient and effective organizational compliance with an increasingly intricate global regulatory environment.”

While a significant boon for Sybenetix and the capital’s global reputation for AI innovation, the sight of another promising tech firm being snapped up by a US giant is likely to fuel fears that some of London’s most promising AI firms are easy pickings for the global tech giants.

Twitter’s $150m acquisition of Magic Pony last June followed Microsoft’s $250m cash acquisition of SwiftKey and, of course, Google’s £400m acquisition of DeepMind back in 2014.

The concentration of AI experts and academics in London has made the capital a global leader in the field with new companies popping up on a weekly basis applying algorithms to a vast array of fields and problems.

However, the challenge will now be keeping that talent within the city and ensuring that London is not just the foremost place to establish an AI business but also to grow and expand too.