ConvergEx Holdings announced today the sale of its software platform business, consisting primarily of order management services provider Eze Castle Software LLC and execution management services provider RealTick LLC, to an affiliate of private equity firm TPG Capital. The new entity, Eze Software Group, announced it will acquire Tradar, a supplier of portfolio management and accounting solutions primarily targeted to hedge funds. Financial terms for the acquisitions were not disclosed.
As we noted last September, ConvergEx’s asking price for Eze was $1 billion, although there was skepticism that this price would be attained. Eze Castle is estimated to generate around $65 million in EBITDA and RealTick’s EBITDA is thought to be between $12 and $15 million.
Tom Gavin, chief executive officer of Eze Castle Software and head of ConvergEx’s Software Platforms, will lead the new company along with the existing management teams from Eze Castle Software, RealTick, and Tradar.
ConvergEx has a marketing agreement with the new entity, which allows cross-selling of the services.
After the CVC Capital Partners proposed acquisition of ConvergEx for $1.9 bln fell through, pressure has grown on ConvergEx to divest its most saleable assets. ConvergEx is quick to note after today’s announcement that its owners, BNY Mellon and private equity firm GTCR “will maintain their significant investments in the company.”