New York-based Nyfix has entered into a definitive agreement to sell $75 million of convertible preferred stock to Warburg Pincus.

The preferred stock is convertible at a rate of $5.00 per common share, which is 6.5% lower than the stock's closing price on Friday. As part of the agreement, Nyfix is also issuing Warburg Pincus warrants to purchase 2.25 million shares of common stock at an exercise price of $7.75.

Nyfix says it intends to use the net proceeds from the investment for general corporate purposes and business development activities.

The vendor has also appointed Howard Edelstein as chief executive officer and a member of the board, replacing Robert Gasser who has stepped down.

Earlier this year Edelstein quit financial networking services firm BT Radianz and joined Warburg Pincus as an "entrepreneur-in-residence". Edelstein had been heading up the Radianz business - which was acquired by BT in April 2005 - since July 2003 when he took over from Doug Gilstrap.

Prior to joining Radianz Edelstein was president and CEO of Thomson Financial ESG, which he founded and later merged with the Depository Trust and Clearing Corporation's Tradesuite business to create trade matching utility Omgeo.

Commenting on Nyfix, Edelstein says the firm plans to aggressively reinvest in the business and evaluate strategic opportunities on a global basis.

Nyfix says Lon Gorman has been elected as its new chairman of the board following the resignation of Peter Hansen.

In conjunction with the closing of the transaction, which is expected within 45 days, Cary Davis, a Warburg Pincus managing director, and William Janeway, vice chairman at Warburg Pincus, will also join the Nyfix board of directors.

Last month Nyfix sold its overseas business to French trading technology firm GL Trade and said it would now be focussing on its core business - FIX Order routing within the global equities markets and associated transaction offerings.