ConvergEx Group has signed an agreement to be acquired by CVC Capital Partners-advised funds in an all-cash transaction expected to close in the third quarter this year.
Terms of the sale were not immediately known.
Upon close of the transaction, CVC will be the largest owner of the ConvergEx Group, while BNY Mellon will remain as a minority shareholder. The existing ConvergEx management team, led by Chairman and CEO Joseph Velli, will remain substantial shareholders and continue to manage the company.
ConvergEx was originally formed in 2006 by combining assets of BNY Mellon and Eze Castle Software. Offering investment technology and servicing, ConvergEx products and services span the investment life cycle across multiple asset classes.
“ConvergEx is thrilled to have CVC join us as our majority investor and our new partner as we continue to build our world-class technology company,” Velli says. “We are also very pleased to be continuing our long-standing and highly productive relationship with BNY Mellon. Together, along with the ConvergEx management team, we see tremendous opportunities in our company’s future and we are fully committed to growing our business even further.”
The company has over 1,200 employees in 22 locations worldwide and partners with more than 4,000 customers accessing over 100 global markets. Velli says ConvergEx expects 20% year-over-year growth in 2011.
“ConvergEx is a best-in-class software and technology provider to asset managers and financial intermediaries with strong positions across its broad portfolio of products and services, says Kamil Salame, CVC partner and head of the US Financial Institutions Group. We are excited to partner with its highly regarded and exceptionally deep management team. The company is well positioned to benefit from the continued growth of capital markets globally and, given CVC Financial Institutions Group’s global resources and CVC’s worldwide office network, we believe our partnership will be complementary. Furthermore, we welcome the continued ownership and cooperation of BNY Mellon during this exciting new phase of the company’s growth.”
(CG)