LiquidPoint, Convergex‘s options trading and tech business, and Dash Financial, a trading tech provider, have agreed to merge. The combined entity will be a financial tech company in the options and equities markets. No financial terms were disclosed. Raymond James advised Dash on the transaction. Convergex is backed by GTCR.
NEW YORK, Jan. 4, 2017 /PRNewswire/ — Dash Financial announced today that Dash and Convergex have signed a definitive agreement to merge Dash and LiquidPoint (Convergex’s Options Trading and Technology business), creating a leading financial technology company in the options and equities markets. Dash Financial is a leading institutional trading technology, execution and analytics provider devoted to bringing unfettered transparency and superior performance to the U.S. options and equities markets. LiquidPoint is a leader in advanced options technology and routing services with deep penetration into the sell-side and exchange communities.
Private equity firm GTCR, which owns a controlling interest in brokerage firm Convergex, will be contributing LiquidPoint from Convergex to merge it with Dash. This merger brings together two highly complementary businesses to create a clear leader in the U.S. options agency execution space with 13% market share. The combined entity will operate as Dash Financial Technologies and be majority owned by GTCR. The independent company will be led by Peter Maragos as CEO and Ben Londergan as President.
“Our core mission is to deliver highly transparent trading technology and pure agency execution solutions to the institutional community,” said Peter Maragos, CEO of Dash. “Together we are uniquely positioned to offer the widest range of solutions to help the buy side, sell side and exchanges navigate the ever-evolving market structure and regulatory environment.”
“We are very excited to be joining forces with Dash,” said Ben Londergan, Executive Managing Director and Head of Options Trading and Technology, Convergex/LiquidPoint. “The increase in human, technology and financial assets that we will share through this merger will help keep our products and services ahead of the rapidly evolving market microstructure and the demands of our clients.”
“It has been very gratifying working with an exceptional team whose hard work resulted in impressive growth over the past three years and whose efforts were critical to this exciting transaction,” said Eric W. Noll, Convergex President and CEO. “On behalf of Convergex, I would like to congratulate all of the parties involved in this deal and look forward to working with Dash Financial Technologies in the upcoming months on a smooth transition.”
Collin Roche, Managing Director at GTCR commented, “This merger creates a well-capitalized, growing financial technology firm that is able to deliver the next generation of trading and transparency solutions to the largest and most sophisticated clients. There are also great synergies between these two firms, and we believe this merger will unlock the full potential of both businesses.”
“We are thrilled to be working with the very talented teams at Dash and LiquidPoint,” said Dean Mihas, Managing Director at GTCR. “We have great confidence in their ability to deliver exciting product innovations and raise the bar in terms of what clients can expect from their trading technology partner. GTCR is excited to participate in this transformative merger which creates a truly unique and scalable business. We also want to express our gratitude to the full Convergex and LiquidPoint teams for their hard work and success over the last three years.”
The transaction is expected to close in Q1 2017 subject to customary closing conditions including regulatory approvals.
Dash was advised on the transaction by Raymond James and Sidley Austin LLP served as Dash’s legal counsel. Kirkland & Ellis LLP served as legal counsel for GTCR and Convergex.
About Dash Financial
Dash Financial is a leading trading technology provider. Its advanced, pure agency execution and analytics platform offers unmatched levels of transparency and control, empowering buy-side traders to analyze and adapt their trading strategies. Launched in 2011, Dash’s flexible and performant next-generation system was designed from the ground up to tackle the structural deficiencies inherent in today’s ever-evolving market microstructure, as well as provide the highly-trained team of experts necessary to help navigate it.
LiquidPoint currently operates as the Options Trading and Technologies business of Convergex. LiquidPoint offers advanced proprietary options routing and technology, high-touch services and clearing solutions. The firm has deep penetration within the sell-side and exchange technology space and their experienced team helps create value for clients by seeking and managing liquidity while also minimizing market impact and latency.
Convergex is an agency-focused global brokerage and trading related services provider that takes on the industry’s toughest challenges, from complicated trades to complex businesses. With clients’ interests as the top priority, Convergex delivers comprehensive solutions that span global high-touch and electronic trading, options technologies, prime brokerage, clearing, commission management and beyond. Headquartered in New York with a presence in several other locations including Atlanta, Boston, Chicago, Orlando, San Francisco and London, the company serves nearly 3,000 clients accessing over 100 global market centers.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, Technology, Media & Telecommunications and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $12 billion in over 200 companies. For more information, please visit www.gtcr.com.