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Welsh Carson To Buy Triple Point Tech from ABRY

Boston-based private equity firm ABRY Partners is expected to exit Triple Point Technology after five years, sources say.

Welsh, Carson, Anderson & Stowe is buying Triple Point, persons say. The $500 million sale is expected to close this week, one source says.

Westport, Conn.-based Triple Point provides software to manage commodities and enterprise risk. The company employs more than 600 people in 12 offices and support centers around the world, according to the Triple Point web site.

In August 2006, ABRY recapped Triple Point and invested $38 million in convertible preferred stock for a majority stake, according to a statement.

In late September, Triple Point was in the market for a $185 million loan to back its acquisition by Welsh Carson, Thomson Reuters Loan Pricing Corp. said. Standard & Poor’s Ratings Services on Sept. 29 placed Triple Point on creditwatch with negative implications due to the pending sale. Financing for the deal includes a $20 million revolver, a $185 million term loan and $90 million mezz debt, S&P said.

Because of Triple Point’s EBITDA growth  for the 8 months ended Aug. 31, the company’s pro forma debt leverage is in the low-6x area, S&P said. This is similar to its adjusted debt leverage at the end of fiscal 2010, the ratings agency said. “Still, interest coverage ratios will tighten and cash-based obligations will increase,” S&P said.

Triple Point has been rumored to be up for sale since Hellman & Friedman agreed to buy OpenLink Financial last month. Hellman & Friedman paid roughly $800 million for OpenLink, sources have told peHUB. Uniondale, N.Y.-based OpenLink also develops software for the commodity, energy and financial services industries.

Officials for ABRY, Triple Point and Welsh Carson couldn’t be reached for comment.