Pedestrians walk in front of the JPMorgan Chase headquarters building in New York.
Scott Mlyn | CNBC
JPMorgan Chase said that its asset management division has agreed to buy a fintech start-up that helps financial advisors automate the construction of tax-efficient portfolios.
The move to acquire Boston-based 55ip, announced Wednesday in a press release, is the first acquisition since CEO Jamie Dimon said earlier this year that the company was on the prowl for takeovers.
“Advisors are increasingly seeking intelligent, automated tools to provide simplicity, scale and efficiency, and by acquiring 55ip we are accelerating our significant investments in advanced advisor technology,” George Gatch, CEO of J.P. Morgan asset management, said in the statement.
JPMorgan didn’t disclose how much it intends to pay for the start-up. The two companies announced a partnership in October that will allow advisors to move holdings into portfolios while minimizing the amount of taxes due.