Goldman Sachs has sold a majority stake in its Redi fintech unit to a consortium of major finance players. Financial terms of the deal were not disclosed.
The consortium includes BofA Merrill Lynch, Barclays, BNP Paribas, Citadel and Lightyear Capital, with each firm taking a place on the Redi board. Goldman retains a minority equity stake.
Goldman acquired the software foundation for Redi - which operates the RediPlus execution management system - as part of its purchase of Nyse specialist Spear, Leeds and Kellogg in 2000. Rumours first surfaced early last year that Goldman was looking to spin off the unit, inviting other banks and brokers to take a stake in the business.
Redi's new headquarters are in New York, supported by five regional offices in Boston, San Francisco, Chicago, London and Hong Kong. The core product, technology, sales and support teams will stay in place with Rishi Nangalia, who previously co-managed the Goldman Sachs Electronic Trading Business Development group, serving as CEO.
Says Nangalia: "Our clients are at the core of everything we do and we look forward to continuing to develop our community of investors, brokers and content providers."
Bina Kalola, head, global equities strategic direct investments, BofA Merrill Lynch, adds: "BofA Merrill Lynch is excited to be a strategic partner with Redi and merge our own EMS technology onto a global platform with proven capabilities across multiple asset classes."