Dubai buys SmartStream for £200m

Dubai buys SmartStream for £200m

The Dubai International Financial Centre (DIFC) - owner of the Dubai Stock Exchange - has agreed a deal to acquire British fintech vendor SmartStream Technologies for £200 million.

DIFC Investments, the investment arm of the DIFC, will acquire the UK business from private equity firm TA Associates and the company's management and employees.

TA acquired its 80% stake in the business from London-based 3i Group - which led a management buyout of the firm in 2000 - in September 2006.

DIFC says the SmartStream technology will form the basis of its new secure, scalable trade processing and data management platform, which is currently in development.

Commenting on the acquisition, SmartStream CEO, Ken Archer, says: "Being at the heart of this massive industry transformation that DIFC Investments are driving will undoubtedly create exciting opportunities for SmartStream to accelerate our growth over the medium and long term."

The transaction is expected to close in approximately one month.

The news comes a month after Smartstream postponed its initial public offering (IPO) due to weak market conditions. The vendor was looking to raise £70-£100 million in an IPO, giving it a market capitalisation in the range of £250-£300 million. SmartStream was reportedly pressured by institutions to reduce the price of its offer following speculation that the offering was not at a price that reflected fair value for the company.

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