11/14/2012

ConvergEx Mulls Bids for Eze Castle Business

Fund administrator SS&C and private equity shop Advent International have emerged as finalists among bidders for two key pieces of ConvergEx’s business.

Following months of speculation, ConvergEx is expected to reach a deal in the next two weeks on the sale of its popular Eze Castle order management system and RealTick execution management system. ConvergEx, an affiliate of BNY Mellon, has been looking to get more than $1 billion for the two businesses.

Eze Castle, which has more than 400 hedge fund clients, is viewed as the crown jewel of ConvergEx’s trading-technology business, accounting for about a third of the firm’s 1,250 staffers. “This will be a huge premium,” a source said of the expected sale price. “But Eze is No. 1 in market share when it comes to order management systems.”

ConvergEx was formed in 2006 when Eze Castle Software merged with Bank of New York’s trade-execution business with backing from private equity firm GTCR. BNY Mellon and GTCR each own about a third of ConvergeEx, with management holding the remaining stake.

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