GFI Group Inc. has acquired Trayport, a provider of real-time electronic trading software for brokers, exchanges and traders in the commodities, fixed income, currencies and equities markets.
Trayport’s software is installed on more than 10,000 trading screens worldwide, dealing in over 2,000 different trading instruments and supporting over 50 marketplaces across 15 countries.
Trayport, a privately-held company founded in London in 1993, had estimated revenues of 14 million for their fiscal year ending 31 January 2008.
Through its GlobalVision products, Trayport has established a position in supplying software to the European OTC energy markets including electric power, natural gas, coal, emissions and freight.
Trayport’s GlobalVision platforms can accommodate electronic trading, information sharing and straight-through-processing capabilities in all commodity and financial instruments, and is particularly widespread in energy derivatives.
GFI has paid 75 million for Trayport, plus an additional 9 million for excess working capital mostly in the form of surplus cash, for an aggregate purchase price of 84 million. GFI financed the all-cash transaction with the proceeds of a private placement of senior secured notes and amounts drawn under its amended credit facility. GFI anticipates that this transaction will be neutral to its non-GAAP 2008 earnings and accretive thereafter.
“Over the past two years GFI has created a sizeable footprint and leading position in the OTC energy derivatives marketplace through our acquisition strategy. At the same time, we have utilized internal development to create technology platforms in credit, foreign exchange and energy to facilitate customer execution and enhance broker productivity. The acquisition of Trayport represents a singular opportunity to substantively build upon both of these initiatives. Through the addition of Trayport, GFI’s products and services will be fully integrated into the desktop, middle office and back office of our European energy customers,” says Michael Gooch, chairman and CEO, GFI.
“GFI is one of Trayport’s oldest and best customers and understands the critical importance of technology leadership. Teaming up with GFI will enable Trayport to draw upon GFI’s innovative market knowledge in developing more leading edge products for the global trading markets,” adds Edmund Hor, managing director, Trayport.