ConvergEx is selling Eze Castle Software and RealTick to private equity firm TPG Capital. Financial terms of the all-cash deal were not disclosed.
Eze Castle Software, which provides global order management and related investment technologies, and RealTick, a multi-broker, cross-asset electronic execution platform, will operate under the name Eze Software Group.
In addition, when the deal closes in the second quarter the newly formed company will then buy another outfit, Tradar, a supplier of portfolio management and accounting technology.
TPG says that the firm will bring together the products and expertise of the three units into a single platform, for a seamless workflow from front to back office. It will employ 700 people in 12 offices worldwide and serve more than 1400 global buy-side institutions.
Bryan Taylor, partner, TPG, says: "The new company is now uniquely positioned to focus on its specialised product offerings for the front, middle, and back offices. The collective management team has a long history of success in this space and we look forward to partnering with them to continue developing innovative technology solutions for investment managers."
Meanwhile, ConvergEx says that it will "maintain a close relationship" with Eze and the pair have already established a cooperative marketing agreement. GTCR and BNY Mellon, founding shareholders of ConvergEx, "remain committed" and will maintain their investments in the company.
Joseph Velli, chairman and CEO, ConvergEx, says: "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."