California-based Advent Software has signed a definitive agreement to acquire Tamale Software, a privately-held provider of research management technology, in a cash and stock deal worth around $70 million.
Established in 2002 Tamale is a subscription-based business with offices in New York, Boston, San Francisco, Chicago, Los Angeles and London.
Tamale's RMS technology creates a centralised information hub to manage and access research information, such as sell-side research, e-mail and analysis. The system is used by more than 1700 investment professionals at hedge funds, endowments, funds of funds, private equity firms and traditional asset management firms.
Investment management systems vendor Advent says it will pay $28 million in cash for Tamale, with the remainder of the purchase price comprising 900,000 shares at $46.44 apiece.
Based on Tamale's 2008 customer acquisition and run rate, Advent estimates 2009 revenue from Tamale to be in the range of $17 to $20 million. In addition, Advent expects the transaction to be neutral to earnings in 2009.
Commenting on the acquisition Advent's founder and CEO, Stephanie DiMarco, says: "Tamale RMS complements Advent's product offerings, and the integrated solution will bridge research management and portfolio management to increase efficiency and link analysts' recommendations to investment performance."
DiMarco says Tamale Software brings "a track record of success as we extend Advent's footprint in the front office with this powerful, game-changing productivity tool for our clients' investment teams".
Following the acquisition - which is expected to complete in the fourth quarter of 2008 - the Tamale management team and its employees will join Advent, and will continue to develop, service and sell the Tamale system.