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Ten PE shops expected to bid for Calypso Technology

First-round bids for the company are due on March 12, sources said.

Private equity firms are circling the sale process for Calypso Technology, a fintech company backed by Bridgepoint Capital and Summit Partners, sources familiar with the process told PE Hub.

First-round bids for the company are due on March 12, the people said.

Numerous private equity investors are expected to bid for the company, including KKR, EQT, Leonard Green & Partners, Hellman & Friedman, TPG, Genstar Capital, Clearlake Capital and GTCR. Blackstone Group and Motive Partners are working together to place a bid for the business, the sources said.

Strategics including FIS, Bloomberg and Broadridge are expected to bid too.

Calypso, based in San Francisco, provides software that supports trading, risk management, collateral, processing, accounting and compliance for more than 180 financial institutions. Its customers include central banks, asset managers and insurance companies.

The company hit the block earlier this year with Evercore and Jefferies providing financial advice on the sale process. 

Barrons first wrote in January that Calypso was expected to come to market in 2021. Barrons’ subsequent article in February also mentioned that Blackstone, Vista Equity Partners and GTCR may be interested in Calypso. According to PE Hub sources, Vista is not expected to bid for Calypso.

Calypso generates nearly $250 million in revenue and around $100 million EBITDA, the sources told PE Hub.

A potential sale looks poised to generate a good return on invested capital for Bridgepoint and Summit, with a transaction estimated to value the business at close to $2.5 billion.

Bridgepoint, a European buyout shop, and Summit, a Boston growth equity firm focused on technology investments, jointly acquired Calypso in April 2016.

Bridgepoint, Jefferies, TPG, Clearlake Capital, Genstar, KKR, and Blackstone declined to comment. Motive Partners, Hellman & Friedman, Calypso, GTCR, Leonard Green, and Evercore did not return PE Hub’s requests for comment.

Disclosure: PE Hub, a subsidiary of PEI Media, is owned by Bridgepoint Capital.