Opalesque Industry Update: Linedata has agreed to acquire HCL Technologies' CapitalStream business and enter into a strategic partnership with HCL Technologies Ltd. The transaction is expected to close before the end of Q1 2013.|
Linedata is one of the leading providers of software and services to the credit and financing industries in Europe and Africa. Linedata has also developed a significant presence in North America in the asset management area.
Acquisition of CapitalStream
CapitalStream is a market leading software platform that offers a sophisticated suite of credit lifecycle management solutions to the financial services industry. It has a fast-growing client portfolio of prestigious banking and other financial institutions in North America. Revenues for their last financial year ending June 2012, expressed in U.S. GAAP, amounted to $ 30 million. The Company employs approximately hundred employees in the USA (Seattle, WA & Irvine, CA)
As part of the acquisition, Linedata would acquire all the assets and associated liabilities for a sum of $45 million. The transaction will be financed by an extension of an existing bank loan with a pool of banks. Following the transaction, debt ratios will remain at a reasonable level and the leverage ratio (net debt post-closing / consolidated EBITDA) will be less than 2.
This combination will enable Linedata to offer a uniquely powerful and comprehensive set of applications for North America and the global marketplace.
HCL Technologies, the long standing owner of CapitalStream, is a leading global technology and IT services company. This agreement reflects HCL’s core strategy of joining hands with product companies to offer transformational services to its clients. Through this partnership, Linedata will be able to reinforce its services offering to support CapitalStream clients in all of their major IT projects.
Anvaraly Jiva, Founder and CEO of Linedata, says: "I am very pleased to welcome this highly talented team and prestigious client base to Linedata. This acquisition will extend our ability to provide end-to-end solutions to the credit and finance industry globally. The partnership with HCL will substantially improve our ability to engage in very large projects with our clients. Linedata’s presence in North America, a key to our global growth, will be significantly expanded”.