ConvergEx, a financial technology service provider backed by GTCR Golder Rauner, has agreed a to acquire NYFIX Inc.’s U.S. Transaction Services business for an undisclosed amount. NYFIX is backed by Warburg Pincus. The deal is related to NFIX’s pending sale to NYSE Euronext.
ConvergEx, a leading provider of investment and execution technology solutions to institutional clients worldwide, today announced that it has entered into a definitive agreement to acquire NYFIX Inc.’s U.S. Transaction Services business. Under the terms of the deal, ConvergEx will acquire the NYFIX Transaction Services’ U.S. electronic agency execution business, comprised of the Millennium Alternative Trading System (ATS) and its direct market access (DMA) and algorithmic products. The deal is contingent upon the completion of NYSE Euronext’s acquisition of NYFIX Inc. and is subject to customary closing conditions, including regulatory review.
“NYFIX Transaction Services’ reputation for technological sophistication, high performance architecture and agency-only model, made this an ideal add-on to our existing sell-side business,” said Joseph M. Velli, chairman and chief executive officer of ConvergEx Group. “Their proven track record and popularity among sell-side broker-dealers speaks volumes about their ability to provide deep, quality liquidity, impressive matching rates and a range of effective execution solutions.”
Once the deal is completed, Millennium will be ConvergEx’s third in-house ATS and will be independently operated alongside its streaming ATS, VortEx(SM), which is known for its substantial institutional flow, and ConvergEx’s dark block trading platform, ConvergEx Cross(SM).
“ConvergEx believes in the many benefits of non-displayed liquidity for all market participants and supports efforts being taken to promote more transparency in this rapidly evolving and important space. ATSs encourage competition and improve overall execution quality by reducing information leakage, market impact and execution expenses. In addition, because different execution venues attract unique types of liquidity, ConvergEx believes that it is a benefit to clients to offer numerous sources of in-house liquidity,” said Carey S. Pack, chief executive officer of ConvergEx Execution Solutions. “This acquisition also gives ConvergEx a unique opportunity to realize significant cross-selling opportunities through an expanded sell-side client base.”
Brian R. Carr, currently the head of NYFIX’s U.S. Transactions Services business, will join ConvergEx in a senior management position and will continue to be responsible for the day-to-day operations of the business.
“ConvergEx understands the value of giving its customers a variety of customizable tools and access to distinct destinations to achieve best execution,” said Mr. Carr. “We are truly excited about this venture and look forward to working side by side with the ConvergEx team.”
ConvergEx is not acquiring NYFIX Inc.’s European Transaction Services business.
BNY ConvergEx Group, LLC provides investment and execution technology solutions to institutional clients worldwide. The Company provides a full array of leading technologies and an integrated platform of performance-driven, global trading capabilities. BNY ConvergEx Group is comprised of the following businesses: BNY ConvergEx Execution Solutions LLC (member NYSE/FINRA/SIPC), LiquidPoint, LLC (member CBOE/SIPC); Eze Castle Transaction Services LLC (member FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); G-Trade Services LLC (member FINRA/SIPC); Eze Castle Software LLC, and ConvergEx Research Solutions LLC, of which Jaywalk and Cogent Consulting are divisions. Additional information is available at www.bnyconvergex.com.