Carlyle Group in $700m deal to acquire Dealogic
GLOBAL asset management firm the Carlyle Group, together with other investors, has agreed a $700m (£438m) deal to buy international financial software company Dealogic and two related joint ventures.
The deal is set to land Dealogic’s founders with a windfall of around £250m, CityAM understands.
The founders and management will re-invest equity into the transaction, with the New York-headquartered company’s long-serving chief executive Tom Fleming remaining in the role.
The transaction sees Carlyle partnering with co-investors Randall Winn, co-founder and former CEO of Capital IQ, and London-based financial publisher and events company Euromoney Institutional Investor.
Euromoney will take a 15.5 per cent stake in the company at a cost of $59.2m. As part of the deal, Euromoney will get a seat on Dealogic’s board and 20 per cent of the voting rights.
Carlyle’s equity for the takeover will be stumped up by Carlyle Partners VI, a $13bn buyout fund. The asset manager has secured committed debt financing from JP Morgan, Barclays Capital and Deutsche Bank Securities to fund the leveraged buyout.
The deal is subject to the standard regulatory approvals, but is expected to be completed by the end of 2014.
Cam Dyer, Carlyle managing director, said: “Through its 30-year history, Dealogic has invested heavily in developing its technology to create solutions that drive productivity and profitability for its customers and has become an increasingly important part of its customers’ critical work flows.”
Fleming added: “We are excited to partner with Carlyle and will benefit enormously from their significant experience in the financial services technology sector and deep relationships across the financial community.”
Formed in the UK in 1983 by investors Simon Hessel, Sir Peter Ogden and Philip Hulme, Dealogic is a global provider of data and analytics, and market intelligence for financial institutions. It has more than 500 clients.
BEHIND THE DEAL
INVESTEC | ANDREW PINDER
1 Pinder joined Investec in 2002 having previously worked at Soundview Technology and Dresdner Kleinwort Benson.
2 He is now head of investment banking and leads the technology, media and telecoms advisory team where he advises companies and private equity funds on transactions.
3 Last year, Pinder advised Servelec on its float – the UK’s biggest tech float of its kind for three years.
Also advising…
Investec’s Junya Iwamoto; JP Morgan’s Rupert Sadler, Christopher Dickinson and Adam Laursen; and Barclays’ Joel Fleck, Andrew Owens and Hugh Moran.