Fri, Apr 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eze Castle Software and RealTick sold by ConvergEx to TPG

Wednesday, January 23, 2013
Opalesque Industry Update - ConvergEx Holdings, LLC, (“ConvergEx”) announced that it has signed a definitive agreement to sell its software platform business, consisting primarily of Eze Castle Software LLC and RealTick LLC, to an affiliate of TPG Capital. After the close of the transaction, Eze Castle Software and RealTick will operate under the name Eze Software Group and ConvergEx will continue to focus on and expand its remaining global execution, institutional brokerage and trading related businesses.

“This transaction represents the beginning of a new chapter in ConvergEx’s history,” commented ConvergEx Chairman and Chief Executive Officer Joseph M. Velli. “From the time that our company was formed, it has always been our strategy to grow and realize the value in our businesses. In the past year, we were approached by numerous parties and we carefully considered the option to divest these businesses. We moved forward with this transaction because it provides a great opportunity to create two optimal businesses, ConvergEx and Eze Software Group, which can each focus on their unique strengths and serve clients’ needs. This transaction will also allow ConvergEx to allocate resources to increase our position as a leader in technology-based global execution and trading products and services while also strengthening our financial position.”

ConvergEx and Eze Software Group will maintain a close relationship after the close of the transaction. The parties have established a cooperative marketing agreement that will ensure that each firm’s services will continue to be offered on an integrated basis. Each firm will also cross-sell the other company’s services.

Both GTCR and BNY Mellon, founding shareholders of ConvergEx, remain committed to the long-term success of ConvergEx and will maintain their significant investments in the company.

“ConvergEx has experienced tremendous growth since GTCR first invested in the company in 2006 and we are confident in the future of the business,” said Collin Roche, principal of GTCR.

Dean Mihas, GTCR principal, added, “The strength of ConvergEx’s team and service offerings positions the company well for the future.”

After the transaction is complete, ConvergEx’s corporate management team as well as senior management of its execution businesses will remain in place. Mr. Gavin will lead Eze Software Group along with the existing management teams from Eze Castle Software and RealTick. Following the close of the transaction, Eze Software Group will also complete its acquisition of Tradar, a supplier of portfolio management and accounting solutions.

“Working as one organization, our businesses enjoyed great success through innovation and collaboration. As ConvergEx and Eze Software Group embark on the next phase in their respective growth plans, we look forward to continuing our relationship in a way that is even more beneficial to ConvergEx, Eze Software Group, Tradar and all of our clients,” said Tom Gavin, chief executive officer of Eze Castle Software.

Goldman, Sachs & Co., J.P. Morgan Securities LLC, and Citigroup acted as financial advisors to ConvergEx. Kirkland & Ellis served as legal counsel.

The deal is expected to close in the first or second quarter of 2013. Financial terms were not disclosed.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Performance - Blackstone profits plunge 77% as performance fees dive, Hedge fund stars' fortunes hostage to market swings, Hedge fund manager goes from billionaire to millionaire in profits plunge, Hedge funds biggest losers in SunEdison's 'magic money machine'[more]

    Blackstone profits plunge 77% as performance fees dive From FT.com: Blackstone, the world’s biggest manager of alternative investments from private equity to real estate, suffered from sharply lower performance fees amid turbulent markets in the first three months of the year, even as it

  3. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  4. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  5. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the