Capco, the capital markets consultancy firm set up by Rob Heyvaert, has been bought by its management in conjunction with the Symphony Technology Group (STG). Between them, they currently control 95.76% of the shares of Capco, following a private transaction with the most important shareholders of the company. They plan a public takeover bid to buy out all remaining shares and warrants. The current Capco management will remain in place.. The deal is premised on the idea that Capco will get access to STG’s financial resources, technology and data analytics capabilities, and its offshore delivery capabilities.
“This transaction is evidence of the management’s belief in the growth opportunities for Capco,” says Rob Heyvaert, Chairman and CEO of Capco. “STG are similarly committed to growing this business. Their investment and support will strengthen our financial resources. We will also leverage their software development and global delivery capabilities, which in conjunction with Capco’s current capabilities, enable us to accelerate the growth of our managed services businesses and to expand our technology transformation capabilities.”
Headquartered in Palo Alto, California, STG is a holding company with $1.2 billion in revenues and more than 7,000 employees worldwide across its companies. It invests in businesses in the software and services markets, and aims to use its financial and operational resources to make them grow faster.
For STG, the deal represents a significant investment in areas the company has identified as substantial growth opportunities: the financial services industry, the market for industry specific application integration services, and business process outsourcing (BPO)/managed services.
“Industry expertise and a global consulting capability are key to building a successful tier-one solutions provider to the financial services industry,” says Dr. Romesh Wadhwani, Chairman, Symphony Technology Group. “Capco has those capabilities as well as a strong portfolio of managed services solutions, a significant opportunity to expand the technology services business and a talented team. The combination makes for an exciting growth opportunity in one of the largest industry segments and a valuable addition to our portfolio.”