2014

ConvergEx Announces Definitive Agreement to Sell Eze Castle Software and RealTick Businesses to TPG

NEW YORK, Jan. 23, 2013 /PRNewswire/ -- ConvergEx Holdings, LLC, ("ConvergEx") today announced that it has signed a definitive agreement to sell its software platform business, consisting primarily of Eze Castle Software LLC and RealTick LLC, to an affiliate of TPG Capital. After the close of the transaction, Eze Castle Software and RealTick will operate under the name Eze Software Group and 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. In the past year, we were approached by numerous parties and we carefully considered the option to divest 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, remain committed to the long-term success of ConvergEx and will maintain their significant investments in the company.  

"ConvergEx has experienced tremendous growth since GTCR first invested in the company in 2006 and we are confident in the future of the business," said Collin Roche, principal of GTCR.

Dean Mihas, GTCR principal, added, "The strength of ConvergEx's team and service offerings positions the company well for the future."

After the transaction is complete, ConvergEx's corporate management team as well as senior management of its execution businesses will remain in place.  Mr. 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.

"Working as one organization, our businesses enjoyed great success through innovation and collaboration. As ConvergEx and Eze Software Group embark on the next phase in their respective growth plans, we look forward to continuing our relationship in a way that is even more beneficial to ConvergEx, Eze Software Group, Tradar and all of our clients," said Tom Gavin, chief executive officer of Eze Castle Software. 

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.

About ConvergEx
ConvergEx Group serves over 4,000 asset managers and financial intermediaries accessing over 100 global markets. The company offers an extensive array of solutions that support increased sophistication and operational efficiencies that help drive growth, address changing regulation and achieve performance goals. Formed in 2006, the firm has over 1,250 employees located in 23 cities throughout the Americas, Europe, Middle East, Africa and Asia-Pacific.

ConvergEx Group includes ConvergEx Execution Solutions LLC (member NYSE/FINRA/SIPC); LiquidPoint, LLC (member CBOE/SIPC); G-Trade Services LLC (member FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); Eze Castle Transaction Services LLC (member FINRA/SIPC); ConvergEx Prime Services LLC (member FINRA/SIPC); Eze Castle Software LLC; RealTick LLC; ConvergEx Solutions LLC, of which ConnEx, Jaywalk and LDB are divisions; ConvergEx Limited in the UK and Australia; and ConvergEx Asia Pacific Limited in Hong Kong. ConvergEx Group, LLC is a subsidiary of ConvergEx Holdings, LLC.  Additional information is available at www.convergex.com.

Contact: Margaret Farrell
MFarrell@convergex.com
212.468.7708

SOURCE ConvergEx Group



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