GTCR Announces BNY ConvergEx Group’s Agreement to Acquire LiquidPoint
Addition of options trading broadens multi-asset class electronic execution capabilities
Chicago, June 11, 2007 GTCR Golder Rauner, LLC announced today that BNY ConvergEx Group, LLC, a leading provider of global agency brokerage and investment technology solutions, has signed a definitive agreement to acquire LiquidPoint LLC, an equity options execution and trading technology firm that provides services to over 100 clients, including hedge funds, institutional traders, prime brokers, financial intermediaries and options exchanges. BNY ConvergEx Group was formed in 2006 when GTCR partnered with The Bank of New York Company, Inc. (NYSE:BK) and Eze Castle Software, a major provider of trade order management and related technologies.
LiquidPoint, based in Chicago, is an agency based registered broker-dealer that specializes in derivatives execution management technology and brokerage services for listed options and equities. Today, LiquidPoint is responsible for routing and/or executing over 22% of the daily listed options trading volume in the US.
LiquidPoint provides a total solution for today’s dynamic and diverse trading requirements, combining sophisticated trading tools with its commitment to superior order execution services and focused customer support. Its premier product, the HEAT™ System, is an advanced trading solution for electronic order entry, routing and execution management, providing access to all US options exchanges from a single desktop application.
The acquisition of LiquidPoint will significantly enhance the BNY ConvergEx Group franchise by positioning the firm to take advantage of the fast growing electronic options marketplace. Additionally, the acquisition creates opportunities to integrate the LiquidPoint technologies into the Eze Castle Software OMS platform to further enhance its multi-asset class trading workflow. LiquidPoint will continue to be managed as a separate company within BNY ConvergEx Group. As part of the transaction, LiquidPoint’s management team will make a substantial investment in BNY ConvergEx Group.
Joseph M. Velli, chairman and chief executive officer of BNY ConvergEx Group, commented, “The acquisition of LiquidPoint is a very important stepping stone for our business because it provides immediate scale in one of the fastest growing asset classes, and more importantly adds further breadth and depth to our product offering.”
“The LiquidPoint team is excited that BNY ConvergEx Group has selected us to become part of their growing family of high-quality execution products and services,” said Anthony J. Saliba, president and chief executive officer of LiquidPoint LLC.
GTCR Principal Dean Mihas commented, “LiquidPoint’s industry leading technology platform and innovative management team will be tremendous assets to BNY ConvergEx Group.” GTCR Principal Collin Roche added, “We are excited to partner with Tony Saliba and his team to continue growing ConvergEx into a world class execution and investment technology firm.”
The financing for the transaction is being led by Merrill Lynch, Morgan Stanley and Goldman Sachs. Morgan Stanley acted as exclusive financial advisor to LiquidPoint.
About BNY ConvergEx Group
BNY ConvergEx Group, LLC provides premier institutional agency brokerage and investment technology solutions designed to deliver a comprehensive, integrated approach to the investment cycle, from idea generation and trade execution to clearance and settlement. The Company offers a broadly diversified suite of services providing innovative solutions in execution and liquidity management, investment technologies, transition management, commission management, research and wholesale and clearing services. BNY ConvergEx Group is comprised of the following businesses: BNY ConvergEx Execution Solutions LLC (member NYSE/NASD/SIPC), including BNY Global Transition Management and LJR Recapture Services; BNY Jaywalk LLC; ConvergEx Global Markets; Eze Castle Software LLC; Eze Castle Transaction Services LLC and Westminster Research Associates LLC (members NASD/SIPC). BNY ConvergEx Group is an affiliate of The Bank of New York Company, Inc. (NYSE: BK). Additional information is available at www.bnyconvergex.com.
Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com.