Vector, Cerium to sell Allegro to ION

After failing in its bid to buy eFront, ION Investment Group is scooping up Allegro Development, four sources said.

How much ION is paying is unclear. Vector Capital and Cerium Technology are the sellers.

Barclay Capital advised on the Allegro sale, two of the sources said. The sale to ION has closed, the people said.

Eldon Klaassen, a noted energy and capital markets technology executive, founded Allegro in 1984. The Dallas firm provides commodity management software for oil and gas producers, power and gas utilities, petroleum refineries and traders.

Frank Brienzi, the former president and chief sales officer of Misys, is CEO of Allegro. Allegro last year acquired FEA, a provider of advanced commodity analytics.

The transaction comes just weeks since ION lost out in its bid to buy eFront, which supplies software for the alternative-investments industry. BlackRock ended up acquiring eFront for $1.5 billion, Buyouts reported.

For Vector, the deal dates to 2014 when it acquired a majority of Allegro via a recap. How much Vector invested is unclear. Klassen, who didn’t sell, rolled his stake over in the transaction, a source said.

Vector is the San Francisco technology-focused investor in software, internet and digital media, communications and industrial technology. It closed its fifth fund on $1.4 billion in 2017.

Klaassen launched Cerium, an energy and capital markets venture firm, in 2013. The New York and Dallas firm acquired a majority of Innovative Micro Technology Inc in October.

ION Investment Group, which provides software for financial institutions and banks, is backed by Carlyle Group. Last year, ION acquired OpenLink Financial, a provider of trading and risk management solutions, from Hellman & Friedman.

News of the Allegro sale was reported by LevFin Insights.

Vector declined to comment. ION could not be reached for comment.

Action Item: Contact Eldon Klaassen at +1 646-694-9894