The Carlyle Group has agreed to buy OpenLink Financial from TA Associates. No financial terms were disclosed for the deal, which is expected to close later this quarter. Bank of America Securities and Credit Suisse Securities are providing leveraged financing. OpenLink is a Long Island-based provider of software for the the commodity, energy and financial services industries.
Global private equity firm The Carlyle Group, OpenLink Financial, and TA Associates today announced that Carlyle has agreed to purchase OpenLink Financial, a software developer for the commodity, energy and financial services industries, from TA Associates. The terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter.
Founded in 1992, OpenLink is a provider of cross-asset trading, risk management, and related portfolio management software solutions for the commodity, energy and financial services markets globally. OpenLink’s blue chip client base of more than 150 customers worldwide includes twelve of the top twenty-five largest commodity and energy companies by market capitalization, eight of the largest financial institutions and eleven of the largest central banks, as well as major hedge funds and public utilities. Headquartered on Long Island, New York, and with offices in New York, Houston, London, Berlin, Vienna, São Paulo, Sydney, and Singapore, OpenLink has more than 785 employees worldwide.
Kevin Hesselbirg, CEO of OpenLink, said, “TA Associates has played a key role in the development of OpenLink, helping us to grow organically and evolve from our entrepreneurial roots. In this next phase of our journey, Carlyle’s technology expertise and financial know-how will serve us well, particularly as we expand internationally and through acquisitions. We see a bright future for the continued growth of OpenLink, driven by the persistent expansion of demand in the industries we serve, as we deliver solutions to the world’s leading energy, commodity and financial services companies who are our clients.”
Cam Dyer, Principal in Carlyle’s U.S. Technology Buyouts group, said, “We are pleased to back CEO Kevin Hesselbirg and his talented management team, who have an outstanding track record and a clear strategy for long-term growth. We look forward to supporting OpenLink’s growth through Carlyle’s global resources and industry expertise, and we expect that OpenLink’s valued clients and talented employees will benefit from this growth as OpenLink continues to increase the breadth and depth of its industry leading software solutions.”
Kurt Jaggers, a Managing Director at TA Associates, said, “We enjoyed working with the entire management team and Board at OpenLink. This has been a truly successful relationship that has further accelerated OpenLink’s growth.” Added John Meeks, a Managing Director at TA Associates, “OpenLink is on a path for continued success and we wish them well.”
Acquisition financing has been arranged by Bank of America Securities and Credit Suisse Securities. OpenLink Financial was advised by Morrison & Foerster and BofA Merrill Lynch. The Carlyle Group was advised by Alston & Bird and Credit Suisse. TA Associates was advised by Goodwin Procter.
Equity capital for this transaction will come from Carlyle Partners V, Carlyle’s flagship $13.7 billion U.S. buyout fund, management, and Founder and Chairman Coleman Fung.
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About The Carlyle Group
The Carlyle Group is a global private equity firm with $86.1 billion of assets under management committed to 64 funds as of June 30, 2009. Carlyle invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology, business services and telecommunications & media. Since 1987, the firm has invested $56.3 billion of equity in 920 transactions for a total purchase price of approximately $229.1 billion. The Carlyle Group employs more than 875 people in 20 countries. In the aggregate, Carlyle portfolio companies have more than $109 billion in revenue and employ more than 415,000 people around the world. www.carlyle.com
About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced middle market private equity firms. The firm has invested in nearly 400 companies and manages more than $16 billion in capital. With offices in Boston, London, Menlo Park and Mumbai, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.