ConvergEx to Sell OMS/EMS Platforms to TPG Capital

The brokerage firm signed a definitive agreement to sell its popular software business consisting mainly of Eze Castle Software and RealTick to a private equity firm, TPG Capital, which will "create two optimal businesses," the company said.

ConvergEx Holdings struck a deal to sell its software platform business, consisting primarily of OMS provider Eze Castle Software LLC and EMS provider RealTick LLC, to an affiliate of private equity firm TPG Capital, the company said today.

After the transaction closes, Eze Castle Software and RealTick will operate under the name Eze Software Group. ConvergEx will continue to focus on and expand its remaining global execution, institutional brokerage and trading related businesses.

“This transaction represents the beginning of a new chapter in ConvergEx’s history,” commented ConvergEx Chairman and Chief Executive Officer Joseph M. Velli. “From the time that our company was formed, it has always been our strategy to grow and realize the value in our businesses.

Velli said ConvergEx had been approached by numerous parties and also considered the potion of divesting these businesses. “We moved forward with this transaction because it provides a great opportunity to create two optimal businesses, ConvergEx and Eze Software Group, which can each focus on their unique strengths and serve clients’ needs. This transaction will also allow ConvergEx to allocate resources to increase our position as a leader in technology-based global execution and trading products and services while also strengthening our financial position.”

ConvergEx and Eze Software Group will maintain a close relationship after the close of the transaction. The parties have established a cooperative marketing agreement that will ensure that each firm’s services will continue to be offered on an integrated basis. Each firm will also cross-sell the other company’s services.

Both GTCR and BNY Mellon, founding shareholders of ConvergEx will maintain their significant investments in the company and remained committed to the long-term success of the execution firm, the release stated.

After the transaction is complete, ConvergEx’s corporate management team as well as senior management of its execution businesses will remain in place. Eze CEO Tom Gavin will lead Eze Software Group along with the existing management teams from Eze Castle Software and RealTick. Following the close of the transaction, Eze Software Group will also complete its acquisition of Tradar, a supplier of portfolio management and accounting solutions.

Goldman, Sachs & Co., J.P. Morgan Securities LLC, and Citigroup acted as financial advisors to ConvergEx. Kirkland & Ellis served as legal counsel.

The deal is expected to close in the first or second quarter of 2013. Financial terms were not disclosed.

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